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This is actually a great question. Like what does it mean for a unit to be cloaked?

If humans can, under ideal circumstances, see cloaked units... Maybe the only mechanic that shows up (like for bots or an API) is the inability to be targeted using an attack command (i.e. you can still be hit with splash damage from ground targeting)

My understanding is that the AI sees things via an API the game exposes, so presumably cloaked units are completely invisible to it until they're revealed.

Not sure but I think in the video they say the AI does not see cloaked units.