[4.12.3] Localization Dashboard Can't Match Criteria for Packages

If your project doesn’t have the synced files from the other developers, then yeah, I imagine that could be an issue.

As for source control, its mostly up to you on how to manage it. We do have some documentation on how to set it up, though:

https://docs.unrealengine.com/latest/INT/Engine/UI/SourceControl/