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Just realized it - attaching a save but it's easily replicable; as the save is litterally a T1 end where I created 3 Russian divisions and kept everything as it was.
The divisions are create to add more morale checks.

Units in SR should get their morale up by a fat chunk per turn they sit there.
But for instance the German Stug that started the game with 80 (85) morale on T1, they still remain 80 (85) at T2 while they should be 85 (85).

I suspect something went wrong in the Beta patch as I am 100% sure the mechanism that set morale augments for units in reserve was well functioning beforehand.

I used your save and advanced the game 1 full turn, and all the Soviet units went up in morale. Did you just advance the turn to turn 2 and see something different? On the other hand, I can't explain why the stug unit doesn't go up, unless it has to do with the already high morale value of 80 having an impact on preventing the gain. I can bug that with the save I have, but I see the Soviet rifle divisions gaining to 50 morale in 1 turn.

All Germans in general do not go up. I posted this after I noticed in a PvP game I've ongoing.

It should not matter that the Morale is high. It can go up to the National Morale if in a TB, and it ramps up quickly if it is in a TB that has 'None' as intensity level.

Soviets seem to work though, yes.
Maybe it's German only , or Axis only - not sure yet.

My guess is that there is a max number (maybe 70 or 80) where it doesn't go up by just sitting in the reserve. If you could run a test of various units and see if you find a pattern, that would be great. Maybe start a short scenario with some units in the reserve and set lower than their NM. I doubt it's an Axis versus Soviet thing, but I having some kind of cap would be similar to how some other things are handled so I could see that this could have been added without it getting documented. My only other guess is that it has to do with the part of NM that is added as a bonus due to motorization, but I think that's less likely. I'd set up the test myself now but I'm running behind in gong through the bug reports.

I did some tests and I believe there is a bug for Axis reserves,
I checked both the Vistula to Berlin situation; and the '41 Campaign.

In the VtB the Soviet are easy to check - and their Reserve works properly. I can just spam new units, they start with lower NM, and their NM goes up.
Axis reserve cannot be checked easily - but in all the TBs their units under NM gain 1-3 Morale points up to their NM.
Soviets work smoothly.
TBs grant a 1d3 roll for Morale up to National Morale. So that is in line. And an additional 1d6 if there is a NONE action.

In the '41 Campaign the Axis Reserve simply do not work.
They start with some units under their NM; they've 2 Stug Btn. there - I sent one to the West and keep one in the Reserve.
I've picked up the Const.Btn that has 70 Morale and sent it to Italy.
In the West the Unit Morale of the 'Special Purpose Battallion' gradually grows toward 99 - so that confirms the roof is the Unit National Morale.

The ones in the West and Italy gained morale in the 1d3 way.
The ones in the Reserve instead gain 0 Morale.

I rule out the d(3) including a 0.
But even if that is the case in my PvP game I've kept the Stugs in the Reserve since T1 to roughly T12, and they remained at Morale 80.

agree, Soviet reserve seems to work as expected, Axis reserve has no morale gain.

Easy not to pick up as its only when a unit is rebuilding from being destroyed does it really become obvious

Have seen this too in the StB scenario as a axis player vs AI. I´m on Turn 16 now and all the Battalions and Divisions getting rebuild that were lost in Stalingrad are still within 35-50 Morale for multiple turns.

I ran a test and I do see that German morale is not increasing. I have bugged it as a high priority item to look into. Thanks for the report.