Let $\Sigma = \mathbb {RP}^2$, and consider a non-orientable $O(2)$-principal bundle $\pi:P\to \Sigma$, this means that $w_1(P)\neq 0$, the first Steifel-Whitney class.
Form the associated bundle $E= P\times_{O(2)}\mathbb{S}^1$ with fiber $\mathbb S^1$ using the left action of $O(2)$ on $U(1)= \mathbb S^1$,
$P$ is a non-orientable fiber bundle over a non-orientable surface hence $P$ is an orientable manifold.
Similarly, $E$ is a non-orientable fiber bundle over a non-orientable surface hence $E$ is an orientable manifold.
PROBLEM: $E$ carries also a principal right $\mathbb{S}^1$-action inherited from the right multiplication of $\mathbb S^1$ on itself, this action descends to the quotient and makes $E\to \Sigma$ into a principal $\mathbb{S}^1$-bundle.
This is impossible because the total space of a principal $\mathbb{S}^1$-bundle over a non-orientable surface must be not-orientable.
What am I getting wrong?
EXPLANED AGAIN MORE IN DETAIL.
$E$ is defined as the quotient of $P\times \mathbb S^1$ by the relations $(p, z)\sim (p g, g^{-1} z)$ for any $g\in O(2)$, with projection map given by $[p,z]\in E\mapsto \pi(p) \in \Sigma$.
$E\to \Sigma$ is a non-orientable bundle because $w_1(E) = w_1(P)$ (Stiefel-Whitney class). As I showed here Fiber bundle orientability vs manifold orientability This implies that $E$ as a manifold is orientable.
I claim that $E$ carries a freee right $\mathbb S^1$-action. For $w\in \mathbb S^1$ define $$[p,z]\cdot w = [p,zw] \in E.$$ This action is well defined: $[pg,g^{-1}z]\cdot w = [pg,g^{-1}z w] = [p,zw] \in E.$ The action is free: $[p,z]\cdot w = [p,z]$ implies that $[p,gz]=[p,z]$, thus exists $g\in O(2)$ s.t. $pg=p$ and $g^{-1}zw = z$ since $O(2)$ acts freely on $P$ and $\mathbb S^1$ acts freely on itself $g=1, z=1$.
Denote by $\Sigma' = E/\mathbb S^1$ the orbit space of this free $\mathbb S^1$-action. Note that $E\to \Sigma'$ is an $\mathbb S^1$ principal bundle. I claim that $\Sigma = \Sigma'$. This is because the orbit of $\mathbb S^1$ acting on $E$ coincides with the fiber of $E\to \Sigma$. Indeed the former is equal to $\{[p,zw]\}_{w\in \mathbb S^1}$, and the latter is $$\{[pg,x]\}_{g\in O(2), x \in \mathbb S^1} = \{[p,g^{-1}x]\}_{g\in O(2), x \in \mathbb S^1} = \{[p,x]\}_{x \in \mathbb S^1}$$ (I considered the fiber over $\pi(p)$.
Conclusion: $E\to \Sigma$ is an $\mathbb S^1$-principal bundle hence $E$ is non-orientable in contrast to what we have seen above.