Yes you must answer this question truthfully.

Your spouse wouldn’t be able to apply for a Fiance visa with LPR status.

Best to contact USCIS to inquire directly.

Yes try calling again and speak to a USCIS representative.

Yes among other forms. Best to consult with an attorney with guidance.

Yes this is mandatory and should be included.

Yes this may present problems in terms of location of filing.

You may apply for extension before I94 expiration.

The EAD is irrelevant as long as AOS was timely filed prior to I94 expiry.

Both family members may apply for the I130.