Kerbal Space Program

This was a "feature" added back in 1.0.5: see the Navball section here:http://wiki.kerbalspaceprogram.com/wiki/1.0.5 .

I've fixed it in EVA Enhancements using the following code:

Transform target;
        Vector3 rotationOffset = new Vector3(0f, 0f, 0f);
        Quaternion attitudeGimbal;
        CelestialBody currentMainBody;
        static NavBall nav = FindObjectOfType<KSP.UI.Screens.Flight.NavBall>(); // cache somewhere
        private void LateUpdate()
        {
            if (!FlightGlobals.ActiveVessel.isEVA || !settings.evaNavballFollowsKerbal)
                return;

currentMainBody = FlightGlobals.currentMainBody;

target = FlightGlobals.ActiveVessel.vesselTransform;

attitudeGimbal = Quaternion.Euler(rotationOffset) * Quaternion.Inverse(target.rotation);

nav.navBall.rotation = attitudeGimbal * Quaternion.LookRotation(Vector3.ProjectOnPlane(currentMainBody.position + (currentMainBody.transform.up * (float)currentMainBody.Radius) - target.position, (target.position - currentMainBody.position).normalized).normalized, (target.position - currentMainBody.position).normalized);

}

And using EVA Enhancements, can now flip between modes.. But really, I don't understand why it was done this way.