Make sure to download the revision of the scenario by JAMIAM - half-way down on the first page of this thread. It adjusts maximum rounds of battle per turn to three and that should also alleviate, to a certain extent, run-on attack turn-burn.
It is also very important to observe Formation Coordination Support Levels, will cover this at greater length separately. The battalions of each regiment will cooperate together with each other and divisional support elements (armor, artillery, engineers, recon, etc.) but will coordinate at a penalty when making attacks with battalions from other regiments. Penalties include reduced effectiveness and greater potential for turn-burn.
The Allied Air Force is at 40% proficiency (for all units, maybe a few minor exceptions).
Currently, units suffering "retreats" either from combat or interdiction, run a higher than typical risk of being routed or sent into reorg, which may be addressed in the near future, something I'm waiting to hear more about before getting into the full swing of things. This would happen in earlier versions, too - just in TOAW III, it seems somewhat more pronounced and I would suspect owing to unit quality checks.
In the Axis forum we will discuss countermeasures for interdiction.
BTW...can someone on the Axis team try to access the Allied Forum and vice versa - want to check to see if the restricted access has been implemented. No major hurry either way, except that some discussions can begin sooner if they are....