It only seems to work for the mission itself sadly. It doesn't carry over with the campaign progression. As a result, don't bother with it while doing Campaign. However, in Skirmishes it does level up your units which attributes to more health, more DPS, etc. and is useful. Plus your army gives you little 'Hurrays!' when a commander or certain unit levels up.
If you use the level up option in the cheat mod, it goes over even after the mission. In other words, if you level up in a mission, you stay at that level after the battle ends.
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