The scenario certainly seemed unbalanced the last time I tried it. As the Allies I managed to lose 1 1/2 squads and malfunction and then eliminate the MMG by Turn 2. The Italians on the other hand passed every Morale Check thrown their way. When you look at the scenario card, it doesn't look like that can happen. The Italians are in Stone Buildings, sure, but their morale is 6 and ELR is 1. They should all be Broken Conscript Half Squads by Turn 3.
We played it to the end though we could have called it before the 50th Infantry Division entered. Eventually the 206th Coastal Defense Division started to crumble as expected but the outcome was never in doubt. The next time I play this the Allies get the Balance.