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Reading the manual, it appears in snow months Axis units in Russia would be halved in attack but not when defending. Shouldn't they also be halved defending? The Germans were not equipped for winter operations expecting that the Russians would be defeated before then so their defensive capabilities should be affected as well.

Winter effects such as these are a general rule and not specific to the USSR and the Axis, e.g. all units have their attack values halved during winter snow/frozen conditions etc.

I can't remember the DE number but there is one for the Russians where they are immune from snow effects. I thought that meant their attack factors would not be halved in snow conditions. If this actually concerns them not losing factors like the Germans doesn't that happen to the Germans only during snow conditions in the first winter they are in Russia?

Hi

The Decision in question only protects them from unit morale penalties and strength point losses, whereas the halving of attack values in snow is a separate engine based feature and applies to everyone, so can't be avoided via this Decision.

So if Axis units are hit with morale penalties in snow months I would think they should be weaker on the defence too? If yes I assume that would be all snow months.

The morale penalties do make them weaker, on both the attack and the defense, and the effect generally wears off after some turns.