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The problem with that answer is the battalion does not determine allegiance for the army, the models within do. Hopefully the FAQ clears it up.

Both do.

I'm pretty certain the FAQ will rule battalion allegiance overrides any individual unit allegiance - but to strict reading at the moment it just doesn't.

For anyone else researching this issue, the FAQ clarifies that all units in a battalion are considered to have the allegiance listed on the battalion. So Stormcast in the Sylvaneth battalion would have the Sylvaneth allegiance. FAQ quote:

Allegiance Abilities, Allegiance
Add the following to the end of the second paragraph: ‘The allegiance abilities you choose will apply for the duration of the battle. When picking your army’s allegiance abilities, all units in a warscroll battalion are considered to have the allegiance listed above the title on the warscroll. For example, the Guardians of Alarielle warscroll battalion includes both Sylvaneth and Stormcast Eternals units, and has ‘Sylvaneth’ listed as its allegiance above the battalion’s title. This means that all of the Stormcast Eternals units in the battalion are considered to have the Sylvaneth allegiance when it comes to choosing allegiance abilities. An army otherwise made up of Sylvaneth units which included this battalion could choose the Sylvaneth or Order allegiance abilities, but the Stormcast Eternals from this battalion wouldn’t benefit from the Sylvaneth allegiance abilities, as they don’t have the Sylvaneth keyword.’