Tight but doable. Ten meters between troopers in a team and then again for the SL and other fire-team is standard today and since a long while. But, well, people bunch up, and when they are taking cover, they tend to bunch up even more. In MOUT, there will be times you'll be rubbing right up against your buddy, whether you like him or her or not.
Infantry platoons have been using frontages for attack and defense of about a hundred meters since WWII. When moving in column, an infantry platoon will likely only be about twenty meters wide (if even that, but possibly a hundred long). Intervals may well ideally be 5-10 meters from the next trooper, but the teams will almost certainly be in wedges and therefore staggered. And sure, squads will probably have about 20m separating them.
But this isn't the real world. "BattleTech" started with squads as their lowest-level infantry element (in BattleDroids) but quickly went up to platoons by the time most players saw them in a ruleset (in CityTech). They have little to no concept of platoon or company organizations, ranking structures, combined arms within an infantry-specific context, or how nearly anything else infantry-related works since the introduction of firearms and explosives. An infantry platoon (or two, if you want to play those odds) fits in a hex tactically in the BTU, and that's just the way it is.
EDIT:
I've attached a very quick scale drawing of a hex and four seven-trooper squad columns with teams in wedges. The circles are 2.5m diameter. Little way to get modern Western infantry standard intervals between troopers and squads, but there is room to move around a little bit.
Daryk is right. The initial image was wrong, so there is considerably less room. Twenty-eight troopers fit, but there is no pretension of anything other than a parade-ground formation using five meter-plus intervals for elbow room.
So, tight, yes. That is the truth.