Assault the house. We have significantly more firepower than the bandits so even if strongly held, automatic rifles and grenades should be enough to clear it. Once taken, and held against counterattacks, possession of the house and wall should at least mean that we're no longer being attacked from both flanks (and are able to inflict substantial casualties on the enemy). Thereafter attempt to push out to reach the stranded squads.
Assault the house. We have significantly more firepower than the bandits so even if strongly held, automatic rifles and grenades should be enough to clear it. Once taken, and held against counterattacks, possession of the house and wall should at least mean that we're no longer being attacked from both flanks (and are able to inflict substantial casualties on the enemy). Thereafter attempt to push out to reach the stranded squads.