This has puzzled me since first playing the game. I love that there are now random encounters when travelling on the roads. Thalmor agents, Imperial soldiers taking a Stormcloak prisoner somewhere, Stormcloak soldiers marching around, Maiq the Liar, thieves, Dark Bro assassins, revellers, a bard, an Orc who wants good death and so on and so on.

But what the hell is with the random [insert race] you come across that just attack you on sight for no apparent reason and will not yield, even when you are 1 sword-slash from killing them? They're usually Orcs and always dressed in rags, footwraps, no helmet and steel gauntlets and they have no weapon, they just punch you. They're identified as "Orc" just above their healthbar when you're fighting, or sometimes "Khajit" or "Argonian", always dressed the same way - rags and steel gauntlets, always punching. What's even more bizarre is their inventory. They always have tons of different food and booze, sometimes some books and quite a bit of gold (compared to other enemies). So they have lots of stuff, but dressed in rags?

I've met them. Only thing I got is this.

My character was approached by an orc wanting to sell skooma. I tried to persuade him out of his stash instead of buying it and that didn't work. He attacked me. After tha I've been attacked by "orc" "breton" "khajiit" "argonian" with no dialog... and they usually have some skooma on them. Always in rags, maybe a dagger or fists.

I've had them jump out at me from behind bushes,walls or just running down the road towards me. The "worst" encounter was with a Dark elf mage at lvl 5, one lightening bolt and I was just an ash pile on the floor.

From the sound of it, you keep running into Skooma Dealers. Skooma dealers are not suppose to attack you unless you have a bounty on your head, or you threaten to rat them out. They are always dressed in ragged clothes. They usually serve as merchants selling skooma.

You know those players that kill everyone they meet on the roads and wear the best that they can find (you've probably played like that at one point)? These people and the unnamed encounters are one and the same; they're just the in-game equivalent!

The only use I have found for them is eating them.

The ones i've had running up to me and just attacking are not wearing rags they wear armor not full sets but they always have boots,gauntlets,armor but no helms.

also i have no bounties

Those sorts always call me a milk drinker. I tend to kill them slowly with poison.

I've only had a couple just attack me, but it sounds like you're describing the Skooma dealer random encounter. I don't know why they wouldn't have weapons and armor. Maybe it makes the Skooma experience worse or something.