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For the convenience I've been using mech infantry with SPG and usually medium tanks added in. But what I noticed is that they fare much better in combat if I were to split them and micro the each type. For example 50 medium tanks in their own get much better odds against the same opponent compared to the mixed formation. Tanks get unnecessarily hit and retreat or die, random SPG deaths even though if I were to attack enemy solo SPG they'd just retreat away, infantry gets butchered etc. Splitting up and microing ie. start with artillery bombardment, then roll in the tanks(especially against enemy tanks) and then hold the line with infantry gets much better results. Is this intended or is it a problem of unit type ratios ?

That is how the game works. There are cases where mixing different model types in a single combat is more effective, but they are niche, so being able to choose which model types to commit is better.

Though judging by the premade formations available in the game, I think the original vision expected mixed units to be effective.