I fired up a singleplayer game: america-large, 8 nations, maximum Lost City & native settlement counts. By 1530 only three AI players have landed (Sweden sailed all the way around to California). The rest are just hovering motionless in offshore. I get the impression that the AI refuses to settle too close to a native settlement and, given the large settlement count, there were only three available locations that had enough open space for the AI to feel safe. While I appreciate that the AI tries to find an ideal location, it shouldn't become paralyzed when there is none. As a last resort, it should just pick a nearby spot and go for it.
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