I have circled where the page indicates I haven't used all my slots, but I am unable to select any spells. You can also see Spells taking both a 1st and a 2nd in certain cases, which I know is making the spell empowered, but why take both slots, and I don't have the capacity to just select memorizing level 1 either. the whole thing right now is kind of confusing.
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You can only prepare so many spells, those spells can be cast at either 1st or 2nd etc. but you can only prepare that certain amount of spells. Some spells are only 2nd level, some are multiple levels, etc etc. so if you select a spell that can be cast at different levels it will make the icon available from each level for that spell, which you can add to your hotbar to cast at that level. The parts you highlighted aren't slots to prepare spells, they are how many casts you have left of that level. hope that helps.
In that case why did some of my level 1 warlock spells turn into level 2 spells when I leveled up? really annoying because now I only have 1 level 1 spell to use in the level 1 spell slot....
The spells themselves don't level up, but you can cast them at a higher level. See at the very bottom there where it says 6/6? That's your prepared spell slots being taken up. so you can prepare 6 spells some might be able to be cast at level 2 others only at that level. The part you circled is how many times you can cast at that level. So your wizard can cast 2 more spells at level 1 casting. Your cleric can cast 1 more spell at level 2.
In that case why did some of my level 1 warlock spells turn into level 2 spells when I leveled up? really annoying because now I only have 1 level 1 spell to use in the level 1 spell slot....
Warlocks have a number of spell slots that aren't locked by level. You always cast spells at their highest level. In other words, at level 4 you can cast 3 spells per short rest.