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Does the AI attempt to keep troop levels in theater boxes at 100% or does it ignore the theater box requirements?

AFAIK, the AI lives with the historical movement of forces in 99% of the cases. IIRC, Gary moves some additional flak to Western Europe, and there may be a few other support units that get moved there, but mostly it just accepts the units already in the TBs.

In my last GC41 testruns I sometimes see a very strong West TB at the cost of others like Italy, leading to West being late with its events and Italy early