I'm aware that it's a relatively common bug for sims to interact with each other, but be no where near each other despite it being a touch based interaction, like hugs and such. I've seen it most commonly with infants and pets. However, it happens basically every single time I do the show off pet interaction with another sim. To my understanding, this interaction causes your sim to go and pet the animal that you are showing off, raising their friendship with you and the sim you are showing the pet to, and sometimes the other sim will pet the animal after (this doesn't always happen. I don't know if it's supposed to or not). However, when my sim goes to pet the dog, they almost always (probably like 90% of the time) pet the dog from across the room so it always looks funny. The interaction still usually works (though a lot of the time this interaction messes up anyways and I have to click on it like three times) but it is visually glitched.
Edit By Crinrict: Added Tag to Title, Adjusted Title
Also leaving the hugging backwards/across the room thread here for reference: Sims hugging backwards/arm glitches | EA Forums - 11936525