I have never seen C. squamulosa var. squamulosa, but just reading the the descriptions leads me to the conclusion that it and C. squamulosa var. montana probably belong in different species. The fact that var. squamulosa is European and var. montana is Western NA would tend to support that.

Regardless, C. squamulosa var. montana has not been transferred to Infundibulicybe. It may belong there, but I have not researched that question.

If I remember correctly, Infundibulicybe was segregated from Clitocybe on morphological grounds, I would like to see some DNA studies confirming or refuting this segregation.

Here’s a good picture of what they typically look like:
http://www.steinpilz-wismar.de/...

If this obs represents a particular californian variety of it, then someone ought to recombine the name to Infundibulicybe squamulosa var. montana. But, what I think is more likely – doesn’t it deserve species status and a name of its own?