I modified the starting location of Kaifeng and Anyang and did some testing see pic. Japanese and Allied bases are min 2 hexes away.
Something I probably did know but forgot, when you start a game there's a randomness to the DL of both bases and ground units. In the pic you can see four base and all have got units in them but Kaifeng shows no units. The DL for all base varied between 1/1 and 3/3. I never got anything else but then I didn't start it that much.
If you do not actively recon a hex you will lose DL to the point were the ground units are removed from the map. In most cases, from the starting DL, it only took 2 turns, by the 9 Dec all the bases were at 0/0 and no units were spotted. I could do anything with those units, like giving them movement order and they still remained hidden.
Once they were all in the above state I started to move various unit towards the enemy, first one hex and then two. All moving units remained hidden until they moved adjacent to the enemy when they were either spotted or not. It seemed being spotted was the most liekly. The movement dot was visable if spotted and still moving (I.e. not told to move 1 hex). It seemed random and has probably got something to do with fog-of-war, which I'd expect. These hidden unitscan carry on being hidden but they were eventually spotted and they were always spotted when they moved into the enemies hex.
What I do not know is how does terrain, unit size, weather, how it's moving (E.g. you can combat move) affect DL. These thing are present in many games.
Looked at the second unit thing and couldn't see a difference. It's often difficult to see the movement marker down to terrain or map being used.
Everything works as I expect and assumed it did if you have fog-of-war on.

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