Not compatible. At least not yet.

So, I was thinking after finding out the hard way that they don't come with ammo, what if you could straight up give them stuff in their inventory, that way you have to pay for their ammo or if you have simple sidearms, be able to give them both melee and range weapons.

This, but limit the inventory to weapons and ammunition, or remove their corpses and items when they die. The squad-death-removal doesn't seem to be working in my playthrough, so it's kinda breaking my game anyway.

If it's not limited, because of the insanely large military cost capacity of a level 10 military, you can basically just order a drop of 20000 silver or smth.