I couldn't finish 'em. Looks like this's gonna get complicated.
The Grenadiers is an enemy in the 1996 Aeris demo of Final Fantasy VII that appeared on Square's Preview Extra, released with Tobal No. 1 in Japan and North America. They appear in the areas of Sector 1 area after the station in Mako Reactor 1. In the final game, they are called Grenade Combatant and use a different model.
They share a model with the Underwater MP enemies found in the Underwater Reactor in the final game. This model is also found within the game data on the last five unused enemy entries.
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The Grenadiers is the only enemy that appeared in the 1996 Aeris demo of Final Fantasy VII to not be directly translated into the final release. The yellow Grenadiers was instead adapted into the blue Grenade Combatant. The yellow color scheme would return when the Grenadiers/Grenade Combatant was adapted into the Grenadier in the Final Fantasy VII remake project.