So we played "Loose cannon" side mission with Mak as the AT-ST.

Does the bounty token still apply? The player with Mak argued that the token goes only to a hero, thus, as the AT-ST, he's not the hero. What's the outcome?

BTW I accepted his logic and lost in round 4!

He is correct (as is his logic). The AT-ST can't rest, it can't use two actions to attack, and it does not receive a bounty token. All because it's not a hero.