RE: Assaults and Wall Flowers
The charts should have been a little more explicit in my opinion.
M All enemy units in hex check morale (14.1)
M# Same as M except add # to morale check dice roll.
# a) # step losses to enemy combat units of any type in hex;
b) and # step losses to enemy non-APC transport in hex.
In each unit category (a and b), first step loss must be taken by unit with best morale status. On “2” or “3” result, assault causes 2 or 3 step losses (respectively) to each category, and at least one of the step losses must be taken by AFV (any type) if present. Step losses to absent unit categories are ignored (7.63). All surviving units check morale as M2.
M and M# are clear, even the attacker's units and leaders that did not participate in the assault must conduct a morale check. My rationale is bullets flying near me would scare me even if I was behind cover trying to recover morale. But then again, I scare easily.
# is more difficult to interpret because (1) it does not explicitly state the attacker's losses must be taken from those units that participated in the attack, and thus (2) all surviving units is open to interpretation. My take, and that has changed over the years, is the losses can be assigned to any of the attacker's units in the hex, even if they did not participate in the assault. The "All surviving units" become "all enemy units and leaders in the hex".
I have no clue what was the designer's intent so I try to interpret rules as close to RAW as possible. It does not mean my interpretation captured the designer's intent. I believe there is a strong case to be made by your interpretation as being the designer's intent but as there is no way to find out the truth, I will stick to my closer-to-RAW (imo) interpretation.
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