It doesn’t, the M163 in game is fully amphibious ready aside from the splash curtain
You can see from the image that the water doesn’t actually reach the level of the curtain and most soviet vehicles (BTR, BMD) do not have their intake/exhaust properly raised to allow for amphibious operations
iirc bmd 4 also have retractible snorkels like on the bmp, they can also install a longer snorkel but that is for more open sea conditions, so the only thing missing is really the animation and the rotation restriction.
As you can see the longer snorkel attaches inside of the retractible snorkel
Well, the soviet vehicles doesnt have to isntall the snorkel, they just deploy them from inside of the vehicle, the vads need to instal the curtains as per the manual