Question 1
If the kicking team's restraining line was the A-35, then B's restraining line is the A-45. That means that A may not legally touch the ball until it has reached/passed B's restraining line, or after it has been touched by a B player. In this case, the ball was touched by A9 at the A-44, so the ball has passed B's restraining line. Thus, the 'touch' of the ball is legal, although A9 commits an illegal batting foul. (We aren't arguing philosophy here - the statement tells us it was illegally batted.) Subsequently, B6 touches the ball when he muffs a recovery attempt, so that eliminates any possibility of an illegal kick out of bounds. The ball then travels out of bounds at the A-42, so the ball belongs to team B at that spot.
Let's not forget all of the penalty options, even if only one penalty makes any sense. 1) Team B can decline the penalty and take the ball at the A-42. Obviously NOT the best option. 2) Team B can have the 10-yard penalty enforced at the previous spot and the kickoff repeated at the A-25. More likely than option 1), but still not likely. 3) Team B can have the 10-yard penalty enforced at the spot where the dead ball belongs to them (A-42), resulting in 1/10 for B at the A-32 (PC=25/RFP, GC/snap). This would appear to the be the most likely option that B would accept.
Robert