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Though the AUG had its advantages, it also faced early hiccups. Initial complaints from soldiers included issues such as malfunctioning ejection port covers and difficulties related to ergonomics and reloading. Despite these initial setbacks, time in active service brought a wealth of operational experience, leading to incremental improvements in reliability and performance.
The AUG first saw combat during Australia's military intervention in East Timor in 1999, a deployment that significantly influenced the country’s defense policies. Following this, the rifle played a crucial role in operations during the Iraq and Afghanistan conflicts, where its capabilities were put to the test in various combat situations.