A target is Obscured if there's Intervening Heavy Terrain. However, it cannot be Obscured by Heavy terrain within 1" of either operative. Here Target 1 is within 1" of the terrain (see ring), so is NOT Obscured.
An operative is obscured if there's intervening Heavy terrain. However, it cannot be obscured by intervening Heavy terrain that's within 1" of either operative.
The 1" exception applies to both operatives. Here the attacker is within 1" of the Heavy terrain (see ring), so the target is NOT Obscured even though the terrain is Intervening.
The 1" exception only negates the part of terrain within 1" of the operative, not the whole feature. Here the attacker is within 1" of the edges, but the center of the wide terrain is still more than 1" from it - target IS Obscured.
An operative being within 1" of a terrain feature doesn't prevent the whole terrain feature from being obscuring, only the part within 1" of the operative.
An operative cannot be In Cover from and Obscured by the same terrain feature. If it would be, the defender must select one of them (Cover or Obscured) for that sequence when their operative is selected as the Valid Target.
An operative cannot be in cover from and obscured by the same terrain feature. If it would be, the defender must select one of them (cover or obscured) for that sequence when their operative is selected as the valid target.
When Cover and Obscured come from different terrain features, the operative benefits from both. Here the target is In Cover from a terrain (within 1") and Obscured by a separate Heavy terrain.
An operative is in cover if there's intervening terrain within its control range.
An operative is obscured if there's intervening Heavy terrain.