Took a quick look through the forums and didn't see anything on this. The way Intel works vs the Instigator title seems open to interpretation so wanted to throw this out for debate.

Enemy squadrons at distance 1 are treated as if they are engaged by 2 additional squadrons, even if they are not currently engaged

Intel. (While an enemy squadron is at distance 1 of you, it has Heavy.)

Looking at the wording my first impression is that Intel wouldn't allow a unit to move away from the Instigator; Intel only affects actual squadrons at range 1. Instigator isn't a squadron itself so Intel would have no impact on it.

Any dissenting opinion on that?

I agrea. Instigator doesn't add any squadrons. So there are no squadrons for intel to modify.

Intel affects squadrons, not ships. So Instigator is 'immune'.

I would have to agree as well.

Cant add heavy if there are no actual squadrons in range.