The document is still valid despite the legibility.

This should not impact ability to claim winnings.

USCIS will not refund the premium processing fee.

It likely will take a few months post biometrics.

It varies depending on case and center handling the case.

Your spouse may adjust status without departing the US through marriage to USC. Consult with an attorney for guidance.

This can be resolved at the time of interview.

Yes this is not an issue and can be done.

It may be and should be reviewed by an attorney for guidance.

This should not but should be reviewed by an attorney to discuss prior to I485 submission.