Unfortunately this will affect PvE as well. As you know there are 2 portions of the Wildfire proc, the initial fire and then the potential spreading of the fire. It was only the spreading of the fire that was incorrectly ignoring armor, but the armor was being ignored on both players and monsters. The damage dealt after the update will be more in line with the initial fire.
The proc rate has no difference between PvE and PvP. The reason you feel the proc happens less in PvP is because you're hitting fewer enemies at a time

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