Hi Kevin. There are rather a lot of questions in there and many of them might take a long time to explain in any detail. So I'll try to give you quick pointers to the relevant documentation and/or examples.
- Template debugging. When this checkbox is checked, if you save and preview the question you'll get to see the actual code being submitted to the Jobe server, i.e. the code obtained by expanding the template with the student's answer and any other template parameters.
- Hoist template parameters and twig all. Ignore these for now. Hoist template parameters should be checked for all modern questions and is unchecked only if you wish to preserve compatibility with much older questions. Twig all is only for very advanced users - ignore it for now.
- Is prototype: see the youtube video "defining new question types" and the documentation on user-defined question types.
- Ace language: see https://github.com/trampgeek/moodle-qtype_coderunner#supporting-or-implementing-new-languages