Yes, she is still sleepy. Also this scene takes place during the Indochina War of 145 which is obviously big war in Indochina during 145 and a bit after.
During this war India, Tisherland, and Vervoo as well as some other factions helped out democratic fighters in Indochina by sending troops and supplies.
The big blue dude in the background is a artillery armored car and they will be bombarding people from afar.
Magnolia and some other people coming with her such as Minte, Kol, Jullbee, and Rorke will be going into the fray itself though.

Lined version of the drawing https://www.furaffinity.net/view/44383606/
The lined version is just the lined foreground which is just Magnolia here.