I need to know what kind of setup, blueprints, or nodes I need to use Vertex.

  1. You can move a vertex either through “code” or a shader. You can use the UVs to mask out the position then use the WPO (World Position Offset) to move it’s location. (Collision doesn’t follow).
  2. You can indeed use both methods together to achieve a more flexible setup: Use vertex painting for base colors and properties, and render targets for dynamic effects like animated transitions; blend both in the material using Lerp nodes.
  3. I don’t really know what you mean here.
  4. Don’t know how I could help you with this particularly either.

I would say that you are quite vague, and need to be way more specific to get better help.