I cannot answer, because is a situation I've rarelly seen, that's why I wanted to know. I am pretty sure that the people that I've talked about this didn't like that some examples worked different as the rules said. Usually when we found those, we reported to some of CB staff or a warcor. Now I don't know if there remain any of those cases. What you mentionis another kind of issue that is still in here and should be out when we get N4
So to concludes on the original question "Question: I have a Kung Shi that my Yan Huo missile launcher can see. There are enemies around the Kuang Shi that are in smoke, but are also part of a 5 man link team. The Kuang Shi goes into Biolocator mode and becomes targeted. My Yan Huo shoots the Kuang Shi, thus is the target of the attack. The blast templates covers enemy link team members. What is their ARO? Can they shoot the Yan Huo or only dodge at -3?" Dodge without -3 or BS attack without -6 malus are the answer All fireteam members are target of the BS attack so sixth sense allow them to ARO shoot through ZVZ without malus.
They become target of an attack. Thanks to Sixth Sense L2 they can: 1) Dodge without modifiers, FtF with the attack roll 2) BS Attack if they could draw a Lof to th Yah Huo (if the smoke wasn't there) without added modifers