Yes, you can apply within 90 days and you need to try to restore.
But if you fail to restore your status then you cannot apply from within Canada being out if status, it's a non compliance issue.
1. Yes, it could be and most probably will be. There's some discretion.
2. You can try to restore your status as visitor.
3. It depends on your profile and country of origin.
4. Option 2 is better and safer.