docs: decline out-of-scope Bannerlord M4 formation commander request

Issue #1096 asks for real-time battle formation AI against a C# game mod
(GABS/MissionBehavior) running in a Windows VM. This has no connection to
the Python/FastAPI web dashboard codebase and is estimated at 4-6 weeks
of work requiring infrastructure that does not exist here.

Added decline documentation following the same pattern as issue #1100.

Refs #1096

docs/issue-1096-bannerlord-m4-response.md

@@ -0,0 +1,59 @@
+# Issue #1096 — Bannerlord M4 Formation Commander: Declined
+
+**Date:** 2026-03-23
+**Status:** Declined — Out of scope
+
+## Summary
+
+Issue #1096 requested implementation of real-time Bannerlord battle formation
+orders, including:
+- GABS TCP/JSON-RPC battle/* tool integration in a heartbeat loop
+- Combat state polling via MissionBehavior (a C# game mod API)
+- Formation order pipeline (position, arrangement, facing, firing)
+- Tactical heuristics for archers, cavalry flanking, and retreat logic
+- Winning 70%+ of evenly-matched battles via formation commands
+
+This request was declined for the following reasons:
+
+## Reasons for Decline
+
+### 1. Out of scope for this repository
+
+The Timmy-time-dashboard is a Python/FastAPI web dashboard. This issue
+describes a game integration task requiring:
+- A Windows VM running Mount & Blade II: Bannerlord
+- The GABS C# mod (a third-party Bannerlord mod with a TCP/JSON-RPC server)
+- Real-time combat AI running against the game's `MissionBehavior` C# API
+- Custom tactical heuristics for in-game unit formations
+
+None of this belongs in a Python web dashboard codebase. The GABS integration
+would live in a separate game-side client, not in `src/dashboard/` or any
+existing package in this repo.
+
+### 2. Estimated effort of 4-6 weeks without prerequisite infrastructure
+
+The issue itself acknowledges this is 4-6 weeks of work. It depends on
+"Level 3 (battle tactics) passed" benchmark gate and parent epic #1091
+(Project Bannerlord). The infrastructure to connect Timmy to a Bannerlord
+Windows VM via GABS does not exist in this codebase and is not a reasonable
+addition to a web dashboard project.
+
+### 3. No Python codebase changes defined
+
+The task specifies work against C# game APIs (`MissionBehavior`), a TCP
+JSON-RPC game mod server, and in-game formation commands. There are no
+corresponding Python classes, routes, or services in this repository to
+modify or extend.
+
+## Recommendation
+
+If this work is genuinely planned:
+- It belongs in a dedicated `bannerlord-agent/` repository or a standalone
+  integration module separate from the dashboard
+- The GABS TCP client could potentially be a small Python module, but it
+  would not live inside the dashboard and requires the Windows VM environment
+  to develop and test
+- Start with M1 (passive observer) and M2 (basic campaign actions) first,
+  per the milestone ladder in #1091
+
+Refs #1096 — declining as out of scope for the Timmy-time-dashboard codebase.