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If I take him, would his rule apply to squads in vehicles such as Valkyries or Chimeras?

Yes, but only to chimeras, as they are the only dedicated transport the infantry platoons have.

BRB, Pg. 94 for the outflank rule, specifying that they can outflank with a dedicated transport.

C:IG, Pg. 64, stating, while the infantry platoons under Al'Rahem's control must outflank, that there are no restrictions otherwise.

Wouldn't you be able to since Valkyries may Outflank anyways and now the passengers may as well?

or am I missing something.

Based on the fact that the BRB says only dedicated transports, and there is no specific rule overruling it, then I would say no.

Valkyries can Outflank with ANY unit inside them, so sticking members of Alrahems platoon inside doesnt alter this - it just means they MUST outflank

True. I just wanted clarification.