A topic from AEG's L5R CCG Rules forum, copied for Oracle of the Void from a copy of the forum saved in October 2015, so pages it didn't save are missing. Players' names are left out; the rules officials are named. Rulings are as they stood on these dates; later rulings, the rulebooks and the Rules Archive may differ.
Can a ninja with the granted ability from Spirit of the shadows target two people who are both not at the current battlefield? I believe so, but I may be wrong.
Spirit of the Shadows text: Limited: Choose your performing unbowed Personality: If he is a Ninja, permanently give him the ability, "Ninja Battle: Target two Personalities controlled by the same player at different locations: Switch their locations." Otherwise, permanently give him Ninja.
Can a ninja with the granted ability from Spirit of the shadows target two people who are both not at the current battlefield? I believe so, but I may be wrong.
Spirit of the Shadows text: Limited: Choose your performing unbowed Personality: If he is a Ninja, permanently give him the ability, "Ninja Battle: Target two Personalities controlled by the same player at different locations: Switch their locations." Otherwise, permanently give him Ninja.
Sorry, you are indeed wrong.
Nothing in its text exempts the ability granted by Spirit of the Shadows from the Rule of Location, so one of the targets must be at the current battlefield. And then, since its effects would then move the other TO the battlefield by switching their locations, the targeting of the other Personality at a different location would also be legal, via the Rulebook exception to the Rule of Location.