Yes, full custom character team allowed, so long as the same team could be built with the current companions. That way, people with custom character parties don't have an edge over those who don't know how or don't want to have a custom party.
Long rest dependent:
Wizard, cleric, ranger, druid, arcane trickster, eldritch knight.
Short rest dependent:
Warlock, battle master.
Confront means trigger the fight in her lair. If you manage to kill her in her living room, that is acceptable, but if auntie Ethel escapes into her lair, you gotta go down there. From there, you must trigger the fight. You can take her deal at the end if you want.