Its not that they get demoted for nothing. Its the same all over the world IRL where exchange of military personnel happens, and Senior Staff needs to be trained by the local forces. So since they cant be expected to function in the other army at the position their rank would normally hold, the incoming personnel would normally be given a temporary downgrade in rank, so that they can get used to the culture and way of doing things without having to learn while being in command (which would cause some lost of respect).
It must be said though, that the MLAverse does cut off quite a bit, turning Colonels and Majors into LTs and Sgts... which IRL would be quite the insult.
And yes, Marimo is doing Yuuko a favor by going over to train her Personal Honor Guard. Probably assisted with the blackmail of a few pictures...
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When in deadly danger, when beset by doubt. Run in little circles, wave your arms and shout.
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