157th Engineer Battalion - Helmet Required?

I went ahead and customized all the aesthetics of my assault engineers, swapping out the thick helmet models for others. Then I realized there was talk of getting the soviet body armour on soldiers for a bonus, which I wasn’t sure if it was verified or not to work, but does this mean I lose the benefit of the damage reduction by changing the helmets out?

yes, those thick helmet gives you 80% headshot damage reduction.

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I didn’t realize apparel wasn’t strictly cosmetic.

It basicly only matters on the assault engineers with their special helmets and soviet body armor.
Alot of normal helmets and some caps (dont ask me why) can give you 10% damge reduction aswell but that does not matter on a 250% dmg multiplier.