According to Isolate's description, "allies can't attack or gain positive effects during this unit's turn." Thus, isolated characters should not be able to grant buffs to allies during their turn.
Bug: GAC battle, oTraya with Sion DC vs oQueen Amidala with Tech DC. Master Qui-Gon was inflicted with isolate. Master Qui-Gon then used his first special, which would grant stealth to the rest of the team since the Handmaiden Decoy was defeated. Since Master Qui-Gon was Isolated, he should not be able to do so, yet he did and ultimately caused the loss of the battle (Queen Amidala went under stealth and could not be targeted by Annihilate from Darth Nihilus, which gave her time to summon another Decoy and drew out the battle).
This is a severe bug in a very important mechanic as it made a fundamental difference between a win and a loss, not to mention being a unique status effect where the importance of the character and subsequent counter hinges on this mechanic working properly.