I have a mission where player is the team leader of 8 AI controlled team members. I believe I have all of the necessary alive modules with persistence enabled, but when I restart a mission from an alive save point only the player is the the saved progress location while the rest of his ai team members are in the original mission starting location. Can anyone help with this.

Create one file in your mission folder called init.sqf and put this inside:

waituntil {(player getvariable ["alive_sys_player_playerloaded",false])};
sleep 2;
{
	if !(isPlayer _x) then {
		if !(_x getVariable ["Persistent_Teleport", false]) then {
			_x setPos (getPos player);
			_x setVariable ["Persistent_Teleport", true, true];
			sleep .5;
		};
	};
} forEach units group player;

Ok. Do I put that file in the Steam Arma mission folder or the documents>arma>missions folder

Humm... You created that mission or you downloaded somewhere?

I created it in the editor, then exported as SP.

put init.sqf inside of your mission name folder in documents/Arma3, open the mission in editor and export again... Or Open the PBO and put the init.sqf inside.