Not sure how it works but on several occasions when I had few independent units in a region when I defend against the AI and have no divison HQ or leader, I group them, suffer the combat penalties but get a higher entrenchemnt value in return i.e group a militia with entrenchment level of 1
with another of entrenchment level of 4 and voila! Your stack has now higher combat penalty but entrenchemnt level is 4!!!
Shouldn't it be somewhat lower then, like 3 for example, to simulate the need to create extnded entrenchemnt for a new unit?