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I don't know much about penal legions but am interested have looked them up on lexicanum and remember them from a story here and there.

Would penal legions have been used pre-heresy?

I reckon the Emperor wiped out most of his opposition on terra so little need for prisoners to chain up and throw into the front line especially when he had all those large astartes legions back then

is it possible?

The Imperium was still a big place, even back in the Great Crusade. SOMEWHERE probably used something similar to Penal Legionnaires