Do they work together on the 'Gila or will Dalan not get his pilot ability at range 1-2?

He won’t get his ability at range 1-2 because he’s acquiring a target lock and long range scanners says he can’t acquire locks at range 1-2

The "cannot" in the text on LRS overrules Dalan's ability at Range 1-2. If he has a target in the bullseye arc at Range 3 (but not beyond), then he's all good for a free target lock.

Dalan's ability is somewhat limited to start with and LRS limits it even more. They do work together, but just not that well.