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For the Greater Good: A unit can be picked as an Observer if it's eligible to shoot.

Units with Assault weapons are eligible to shoot even if they advanced.

Marker Drone states a unit can be an Observer even if it advanced.

So, does an unit have to have both to be an Observer if it advanced, or just one of the two? Or just the Marker Drone allows a unit to Observe after advancing?

It looks to me like either having Assault weapons or a Marker Drone would be enough.

The Marker Drone allows units who advanced but don't carry assault weapons to still act as observers.

Example: I advance a Strike Team.
Without a marker Drone they cannot be chosen as an observer.
But if they have one they can.