I’ll go by Territory since its probably easier. Just kicking it off with Axis G40 what about something a bit like this?
Germans:
Eastern Germany (Berlin)
Poland (Warsaw)
Holland (Antwerp/Amsterdam)
Norway (Oslo)
Romania (Bucharest)
Italians:
Southern Italy (Rome)
Libya (Tripoli)
Japanese:
Japan (Tokyo)
Kwangtung (Shanghai)
Siam (Bangkok)
Pro-Axis:
Bulgaria (Sofia)
Finland (Helsinki)
Iraq (Baghdad)
That would give the Axis 10 VCs to start and another 3 in their sphere of influence (nods to the pro-side).
For the Allies or Pro-Allied side that would give you 9 more cities to play around with, on top of the 14 they have OOB. Say you assigned 3 Allied Pro-Side VCs, to match the Pro-Side Axis.
Greece (Athens)
Yugoslavia (Belgrade)
Brazil (Rio)
Then pick the top 6 spots for extra Allied VCs.
This would give you…
AXIS 10 VC vs ALLIES 20 VC
With 6 Pro-Side Neutral VCs up for grabs (3 for each side.)
Which 6 Cities would you add to the Allies?
The Axis and Pro-side VCs should activate most major theaters already, since they’d each have a couple VCs in striking distance. North Africa, Mid-East, Balkans, Scandinavia, Western Europe, Eastern Europe, South East Asia.
So maybe focus the extra Allied VCs on Sub-Saharan Africa, South Pacific, North Pacific, Central China?
South Africa (Cape Town)
New Zealand (Wellington)
Amur (Vladivostok)
Western Canada (Victoria)
Szech (Chonqing)
Still leaves one spot left. I like Algeria (Algiers) so basically every nation gets an extra VC.
Or maybe Scotland (Edinburgh) instead of Victoria for the second British VC? Not sure which I like better.
Under this scheme, when you go down to 1942.2 you axe all the Pro-Side neutral VCs, and then remove another 6 (ditching whichever ones make sense, for the gameplay needs of 1942.2, to have as many theaters active and contested as possible on the smaller board.)