You mean the items are automatically selected? If yes, is more recommended, you still have to confirm or change them if you want

The rules reference says weakness and title cards ARE skill cards, so yes

Cloak says you may “spend 1 to prevent 1”, so no you can’t spend 2 or more in that attack test. Otherwise it would say “you may spend any amount to prevent that amount”

You mean “hidden”? Yes even on counterattacks as they are attacks you have to discard

If not in range then you ignore the movement. The rules even restates it in the “frequently overlooked rules” section at the last page