I think what may be happening is this.
The tooltip shows “[11%] damage” which seems to mean that wolves should passively hit for 11% of your damage value.
(D3 worked similar)
What I THINK is happening is that its calculating this twice. So 11% of 11%.
So roughly, if your damage is 10,000, your wolves SHOULD be hitting for around 1100 (11% of 10k), but instead they are hitting for 121 (11% of 1100)