You say 'OGABOOGA'
A ball of fire erupts from your hands, engulfing the area in flames.
Your fireball *** DEVASTATES *** the Nightwalker!
Your fireball MANGLES an arial worker!
An arial worker is covered with bleeding wounds.

Expected behavior would be to not hit my allies.

I assume this will also hit groupmates/cabalmates.

Non-conjurer area spells have a check for in group, but they don't check for servitors and never have. I'll leave it for Daev to decide if servitors should be exempt from area spells. BTW, area spells do have a chance to hit even allies when cast indoors. I can't tell if you are indoor here though.

Such as the mines there. It also has a much smaller chance to hit them in open outdoor areas.