Bleed is Physical Damage though as:
- +Physical Damage increases Bleed Damage
- Aspect of Elements increases the damage of Bleed
I think what is happening here is how Bleeds are applied it isn’t converting it back in time for the weird order of operations going on behind the scenes. This is a pretty common theme and hard to keep track of what all is broken or not working as intended.
Damage Over Time effects and Bleeds specifically seem to suffer the most from this but we have seen this increasingly with how things change tags (Third Blade), Thorns, and Kick (Coee Skill but kind of not really).