So at least you got me curious as to what I actually did. I see that I used the "Replace with Other" trait for the BH action since when you do that the 548 counter has a 548 as its highest level counter before it goes fanatic, so in that case the trait works and you get the correct counter.
Also, I went into the module and added a replace with other trait for the ELR and even though you pick the counter that shows as a 436 in the tray, when you replace it the level 1 image (468) not the level 4 image (436) is what you get. IMO manually picking the counter is better than getting confused when a 468 shows up on the board. In this case you can not match image 4 with image 4 even if it worked in VASSAL since there is no image 4 for the 537 counter.
We have 2 counters in VASL with conscript levels. One is the 436-447-548 path counter and the other is the 436-447-467-468 path counter. Per A15.3 "When substituting a unit of the next higher quality, none of the numbers of its Strength Factor can decrease and, if given a choice between two different unit types of the next higher class, must use the one which gains the least"
Unless an SSR states otherwise, a 436-447-467-468 path is the correct path since you should not skip the 1st line quality squad.