My moonrunes skills don't really allow me to accurately read it much, but from what I can piece together, she kinda stops being all PTSD, and hating on Theo all the time (at least, Kirche accidentally considers them to be girlfriend/boyfriend). But she's not much more than a side-character.
As for actual plot, Schwarzesmarken get sent into Poland, along with a joint NVA-NATO force to deal with an incoming BETA invasion. It goes about as well as expected. There's also the subpoint about NVA being a clusterfuck of politics, and everyone plotting against everyone, even as BETA are about to break through the Oder-Neisse line.
As for current status of the pilots...
Spoiler for Stasi spies 101:
The spy is actually Lizbeth, Theodore's younger sister that comes in as replacement around Chapter 12 for wounded Pham.
The irony is that everyone suspected her to be a Stasi plant, but it takes them time to decide what to do about it, due to her being Theodore's younger sister and all. This gives enough time for Stasi to learn everything, or at least enough to arrest Irisdina, and sentence Schwarzesmarken to death. Lizbeth tries to recruit Theo, and gets her ass handed to her in TSF combat for her troubles. Theo later interrogates and executes her before the entire squadron.
...Someone has also been throwing theories on /m/ that there's a second spy in Schwarzesmarken unit, possibly Pham. It's still unsubstantiated claim, besides the fact that Beatrix apparently raped her once. Because, you know, grimdark.