Hello! I was playing a game with a buddy of mine (we are both still really new) And he used his command squadron token during the squadron phase claiming that the rules say "play when appropriate". I am pretty sure that you need to play tokens during the ship phase but couldn't find anything in the rules (other than the rules reference saying that the squadron command needs to be played after the command dial has been revealed). Does anybody know the rules pertaining specifically to when tokens can be played?

The squadron phase is absolutly not "When Appropriate." The Squadron Token should be played during the Ship Phase, and allows you to take a half-ass version of the Squadron Dial. All the Tokens are like that. Play the token at the same time you would play the dial, but you only get a partial effect.

Regardless of whether you use a dial or a token (or both at once) they're being used to pay the cost of initiating a command. It's the command itself that limits when you can use it.

So yes, you can use the token when appropriate; and the appropriate time for a squad command is when you reveal your dial.

Full details are in the Rules Reference under Commands.

Page 3 RRG :

Squadron: Resolve after revealing the ship’s command dial.