While -dbg is passed through command line, detailed information about smart faction can be seen when mouse-hovering over a smart terrain in the PDA.
A smart terrain is considered contested when two enemy factions enter a smart terrain and each squad's current action is stay on target. When a smart terrain is being contested, all squads contesting the smart will be switched online allowing for combat to occur outside of actor switch distance. This allows for factions to take control of smart terrains, in effect, changing which faction respawns at the smart.
Faction Control is a feature added in 1.2.21.