[Mobhack]

Smoke is an LOS blocker to vision through the smoked hex. It can also provide some cover from spotting attempts for unspotted units.

Any adjacent hex has LOS to the hex opposite, always. So smoke blocks no LOS to the hex beside it. That is why 2 units in adjacent hexes can spot and fire at each other.

An unspotted unit situated in a smoke hex may get a small bonus against units attempting to spot it, especially if it is not a vehicle, but that effect is negligible.

Your faust unit is a tank killer in WW2 terms, having gigantic HEAT pen for the era (no Chobham etc as yet!). The target is a mere T34 and your firer unit is in adequate position - the front armour is well within the faust's capacity unless the pen dice are against you or the hit dice totally abandon your firing unit. Shoot the shot or make the assault - your preference.

Faffing about with smoke like you are trying to do is totally and utterly irrelevant here. You want to take the shot, not hide or put an LOS blocker in the way forcing your unit to move to re-spot it and fire from the move! as you are already where a panzerfaust wants to be - i.e. at 1 hex range from target!

If the T34 is not buttoned and you want to assault it rather than "W" key fire only the faust at it, see if there is another unit which can hose it down and button it up (and hopefully not scatter missed fire into the fausts hex, pinning it!). Buttoned-up vehicles do less well if assaulted than when opened up.

As its a faust, I would target the thing with the "T" sequence then use the "W" key to just launch that, so skipping the assault process as that can backfire, especially if the firer is low EXP and/or MOR. Assault is best for grenades and flamethrowers, Japanese "special attack" suicide units etc.