Hey, I'll answer your questions in bullet points.
No only the red striped areas on the map are KOS site zones. Places written in red are just illegal.
Yes, It's due to some form of glitch so just take them all off.
No AR's without a magazine are still illegal and they will be taken off...
It is 100% the way. From experience, I can tell it's just words. She knows it works to keep you there so she'll carry on doing it. it's a hard decision to make but at the end of the day your mentality is at risk and if you don't try and stop it quick it can easily leave you in a worse state.