As written, yes, they could still take legendary actions. Seems like an oversight to me. The intent behind Turn Undead is presumably that the target's only option is to move further away from you, so in the unlikely event someone turns a legendary creature I'd only use their legendary actions for the purposes of moving away.
There could be an argument that being turned makes you unable to use actions other than specified "For its action, it can use only..."
And legendary actions can't be used if you are unable to use actions: "It can forgo using them, and it can’t use them while incapacitated or otherwise unable to take actions."
It isn't the strongest argument.
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Can an undead creature with legendary actions still take their legendary actions when turned?
How do you interpret the legendary action and turned rules on this?
As written, yes, they could still take legendary actions. Seems like an oversight to me. The intent behind Turn Undead is presumably that the target's only option is to move further away from you, so in the unlikely event someone turns a legendary creature I'd only use their legendary actions for the purposes of moving away.
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There could be an argument that being turned makes you unable to use actions other than specified "For its action, it can use only..."
And legendary actions can't be used if you are unable to use actions: "It can forgo using them, and it can’t use them while incapacitated or otherwise unable to take actions."
It isn't the strongest argument.