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LuaEntity.direction fails to read a character direction and always returns 0 (defines.direction.north) no matter what direction the character is facing.
Writing a character direction with LuaEntity.direction works as expected and the character's direction changes.

This was tested on 0.16.51

Thanks for the report. It's now fixed for 0.17. In the mean time you can read walking_state.direction to get the real direction.