Step 1
Moltres uses Air Slash
Hit: 40 (<=95/100) yes
Crit: 14 (=1/24) no
Flinch: 92 (<=30/100) no
(8+3+3+9-8)*1.5=22.5->23
6 EN
Gallade uses Embargo
7 EN
Step 2
Moltres uses Air Slash
Hit: 81 (<=95/100) yes
Crit: 13 (=1/24) no
Flinch: 4 (<=30/100) yes
(8+3+9-8)*1.5=18
6 EN
Gallade flinched
(ref note: Flinch causes failure to attempt actions and Steadfast only procs off of failure to execute actions, therefore Steadfast does not proc here)
Step 3
Moltres uses Air Slash
Hit: 16 (<=95/100) yes
Crit: 23 (=1/24) no
Flinch: 56 (<=30/100) no
(8+3+9-8)*1.5=18
6 EN
Gallade uses Rock Slide
Hit: 86 (<=90/100) yes
Crit: 1 (=1/24) yes
(8+3-1+9-9)*2=20
8 EN