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My wife is building a unit of Demogryphs. According to their warscroll, "models in this unit can be standard bearers". It then says the same for musicians. Can the unit champion (a model in the unit) also be the standard bearer and musician?

I don't see anything in FAQ or errata covering this.

Age of Sigmar has a surprising number of grey area loop holes like this. Technically yes, all of the upgrades can be on one model (in fact, every model can carry every upgrade). However, it's a TFG thing that won't fly on the table and would certainly be insta-banned at any tournament.

Also, good luck finding the necessary bits to have more than one Standard Bearer or Musician. Most kits come with enough to make at most two of each.

As stated, nothing in the rules prevents this.
However, it is generally seen as a loophole that some people abuse.

Generally speaking people stick to 1 type of "command" upgrade per model, and no more than 1 of each per unit.

In local tournaments we've seen it be ruled that way constantly after a guy kept running a unit all with champion upgrades on everyone lol.

The unit leader is still only one model any way one slices it, but having more than one type of standard/music for those few units which do is OK. I recall there's even an FAQ saying as such.

Just do what I do, pass the banner and music insterment. Since all of them can have it technically, when they die the next guy over picks it up, shuffle the model over and boom, it keeps going. By the time you get down to a 3 models, your probably dicked anyway

 NinthMusketeer wrote:
The unit leader is still only one model any way one slices it, but having more than one type of standard/music for those few units which do is OK. I recall there's even an FAQ saying as such.

Redundancy can actually be helpful in many cases. Having a second banner doesn't stack, but it gives you a backup in case you lose the first banner bearer. There are also a handful of units that can take two or more different banners. Chaos Marauder have one banner that allows rerolls of 1s to wound and one that adds +1 bravery. Obviously, running one of each is better than just choosing one or the other.