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Thanks for your answer.

Just to be safe regarding question 3,5,6. Would it be allowed to use an asset like this (Imagining black was transparent)?

And regarding question number 4. Would it be allowed to upscale texture 2 by a factor of x2 and than put texture number 3 in it with its original size? This would create an overlap of two textures but won't create a new one because the texture number 3 can move independently as an enemy from the box it is trapped in. 

 I created the dog sprite sheet just for demonstration and didn't start on my game in any other way. Should there be no issue with this sprite sheet, then everyone is allowed to use it that I don't have an unfair advantage.