Hi,
We just played our first game and this came up regarding Overwatch.
Brianiac use puppeteer on Mark 14 who was in overwatch and decided to do aimed shoot at friendly model.
Does Mark 14 loose Overwatch?
This is how we did sort this out. So potentially you could move model and turn him 180° so he won't have line of site to enemy models. And IMO Puppeteer is very powerful mutation against models with low Survival.I would say no, he keps his overwatch as the Pupeteer ability makes any model controlled perform an extra ”free” action, not spending the models real activation.