In reality, the main issue is that these two factions, though now fighting tooth and nail, ultimately still adhere to a certain code of martial ethics. Even the Rebel Army's mechas have only gone as far as eliminating nobility.
For civilians, both the Empire and the Rebel Army share the same stance, which is: "Hide and make parts for the front lines, and as long as you don't cause a fuss, you'll be fine."
So, during this rebellion, even for the civilians in occupied territories, life is still bearable. At most, they just need to help manufacture parts for the Rebel Army's mechas and repair them.
After all, this rebellion involves over a billion mechas. Even the ones repurposed for agriculture are forcibly armed and sent back to the front lines as cannon fodder. The Empire's battlefront is likely on the brink of collapse.
