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This fixes the Squad Selection screen so that if you've increased your squad size, you can actually select and equip all the squad members from the selection screen.

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The maps in the game appear to allow a maximum of 9 units per spawn point. This means the max squad size you should use is 8 (leave a slot open for the VIP unit during VIP escort missions). 

See notes at the bottom for more info. 

IMPORTANT NOTE #2: 3/10 Patch PSA!

Thanks to MokaiSaotome for pointing this out. The patch reverts the change made to DefaultUI.ini, so if you had this mod installed previously, you will have to redo the .ini edit in Step Two below.

Fixes that hideously annoying bug so if you mod your squad size to be larger than default, the squad selection screen actually lets you select the team members to bring along.

This does NOT increase the squad size for you. If you want to do that, you'll need to edit the .ini's yourself. That's easy, though.

Step one, increase the squad size:
Go to [Steam Installation Folder]\SteamApps\common\XCOM 2\XComGame\Config\
Open up DefaultGameData.ini in Notepad (or text editor of your choice)
Search for: m_iMaxSoldiersOnMission
Set that equal to some number (default is 4)

Step two, increase the UI limit:
Go to [Steam Installation Folder]\SteamApps\common\XCOM 2\XComGame\Config\
Open up DefaultUI.ini in Notepad (or text editor of your choice)
Search for: MaxDisplayedSlots
Set that equal to the number you set in step one plus 2 (default is 6)

Step three, install this mod:
Go to [Steam Installation Folder]\SteamApps\common\XCOM 2\XComGame\Mods\
Unzip this mod archive into that folder
Activate the mod

BIG BIG BIG thanks to the Long War team! I figured out how to fix this by reverse-engineering their Leader Pack mod.

Spawn points are 3x3 tiles. That means there's a 9 unit limit. If you set a squad larger than this, the game will not be able to find a legal spawn point and will plop your team down randomly at the minimum distance to the objective. This may or may not be on valid tiles! Units might be floating in air. All bets are off. 

That means you should set your default squad size to no higher than 6, and the upgraded size should be no higher than 8. If you're brave, you can set the squad maximum to 9, and then only bring 8 team members on VIP missions. 

TL;DR: the biggest you should set your squad size is 6 (8 with GWC upgrades). More than that will break things.