Units as obstacles - does it make sense?

This might be an absolutely stupid idea, so please correct me if it’s so.
I’m really not happy with RVO at the moment, as our squads become extremely jittery (even with RVO lock during combat). The effect is amplified because all units are attached to the squad, and only the squad does the pathfinding. Units within the squad simply update their position to always follow the parent.

Is it possible for an object to be treated like a collision object and update the grid around it every few frames? This sort of works - except obviously it cannot stand in its own place and tries to get to a different position all the time. Perhaps this is a stupid idea, but does anyone have any potential solutions to my problem?

All best