While exploring on the Islands I noticed my Active Pet is able to beat the monster's by walking up to them. Battle is done with no fighting. I moved him to a different Island in the hopes it was just the one of the Islands, but nope same thing happened. 

Is your fighting on Auto-battle mode?

I just looked and it's on Auto. My bad. I thought it was a bug. That you for asking. I would have never noticed it.