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1940 decision event [so Japan was not at war with the Western Allies yet], giving the UK some Eastern/Pacific minors, but risking having Burma become unstable. Went with yes, just to see what would happen--couldn't be THAT bad, could it?

Two partisans immediately spawned in two inland cities. OK, the Indians had nothing better to do, so they + 2 Malaysian corps went in to take it all back.

The weird thing is that, even tho I could attack and damage them, I couldn't enter any enemy controlled hexes. At first I just assumed it was the jungle penalties holding me back, so bought a tank, but it couldn't enter them either [one hex away] despite high supply and full movement.

I'm guessing they were Japanese-controlled, who were still not at war with the Commonwealth, but if so why could I attack them? Note India couldn't enter any Chinese hexes either.

Hi, which campaign is this in? Only I can't think of a Decision in the official 1939 campaigns that resembles this, the closest is DE 105, but that affects Malaya not Burma:

DE 105 – UK: Prepare Singapore for War?
Event fires: On the 1st March 1940 when the UK is fully mobilized and not surrendered,
Malaya is aligned with the Allies but not fully mobilized and London is in Allied hands.
Cost of accepting: 300 MPPs at 50 MPPs a turn for 6 turns.
Yes: Malaya joins the Allies.
No: Malaya remains neutral.

It (again) is a Crispy event I believe.

Point is this would likely affect the default campaign as well if partisans then spawn prior to Japan being fully at war.

That is unique to my mod, I could fix that by adding a belligerency script between occupied Burma and the Commonwealth Countries (India, UK). That was an oversight.