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I genuinely can't make my mind up about this.
I basically agree with both you and @andyp
I can't see how the military can take any position other than A but then I'm acutely aware that I'll never (hopefully) be in a similar high stress situation so I am not really able to judge whether it is B.
The bottom line is that a British soldier is required not to behave like he did, a life was lost, rules of engagement were broken...it was a murder.
I think
Rules of War would suggest that everyone (both sides) plays by the same rule book. To expect people no matter how will trained to react in the right way in such extreme circumstances in my view is not realistic.