1. They recover after every combat event! But not after every enemy if you’re fighting multiple hostiles.
2. Nope, it’s all about your notoriety and the risk of it going wrong, giving the enemy a bonus to their attack.
3. Yes, working your way up from the weakest one. If you fail, you don’t have to fight the ones you’ve successfully threatened.
4. Yes, 6 of each!
5. It’s up to you as the player and how you would like the story to go. Either count it as you let them get away when calculating your final score, or continue the loop and assume they are the next lead/target you meet.
Hope that helps!