Question 1: These are essentially folders (/conf/<your-site) in which you can save your Launch config. When you apply it to a site you simply point it to the folder level (not the individual Launch config) so if you host multiple sites or desire different Launch configs you would want multiple configuration folders under /conf.
Question 2: This is most likely on the Adobe I/O or Admin Console side.
In the Admin Console, https://adminconsole.adobe.com/ navigate to the Launch Product Profile you want to use > and go to the Permissions tab. Ensure that the properties are enabled:
Then in Adobe Developer Console (I/O) Make sure that the Product Profile set up in the admin console is selected: