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I may be mistaken, but have seen several cases where an attacker eliminates an entrenched defender, move a unit in to capture the hex and immediately gains some entrenchment benefits. My question/issue is the entrenchment within the newly captured hex is it still is facing from the attackers direction and is bare towards the defenders direction.

A counterattack from a defenders unit adjacent to the previously lost hex has no entrenchment on the hex side but an attack from the previous defender seems to be dealing with entrenchment challenges. And yes, I've seen where the attackers unit which moved into the hex no longer has sufficient points left to entrench .....

Curious if this has been a past issue ?

I seem to recall it being stated that if a captured entrenchment (or fortification) is facing the wrong (or open) direction in a hex when defending against an subsequent attack, an entrenchment value of zero is applied in the combat calculations.