Regarding 1. No, I don't think so. As Data said, that's from Memory World, which is in a past based on the Pharoah's Memories, and which Yami Bakura had some influence setting up. It was a highly situational world, and I'm not sure how much control or freedom they had in their roles in the Memory World.
2. 4Kids regularly made edits that conflicted with canon -heavy use of Shadow Realm, saying whether characters died or not, making characters who lost their souls to the SoO make breathing sounds, etc.- & cut content. And the Pyramid of Light movie, their own production, contradicted canon. Heck, they claim that the Ancient Egypt stuff happened 5000 years ago instead of 3000.
As for Capsule Monsters, it was also a 4Kids production, commissioned and edited by them, following that same timeline. One important part is this guy, who shares his name with a real historical figure:
http://yugioh.wikia.com/wiki/Alexander_the_Great
Long ago, Alexander conquered many parts of the world with his large and powerful army. Eventually, he conquered Egypt and gained the Millennium Ring, learning of the power that could rule the world. However, it was locked away by Shadi, who feared that it would be used only by evil. After passing a series of tests, he gained the key to unlock this power, losing his vassals in the process. However, the key crumbled in his hands, and his dark half (created thanks to the Millennium Ring) was split apart from his good half, and he was trapped within the Pyramid and his good side being flung into the Capsule Monster world. Some time later, the descendant of Alexander's good side came along; Dr. Alex Brisbane, and was possessed by Yami Alexander, who then lured Yugi Muto and his friends to the Capsule Monster game.
Supposing we ignore the 5000-not-3000 years aspect of 4Kids's edits, does this match-up with Yu-Gi-Oh!'s actual timeline? What with the involvement of Shadi? And I assume it's fine for a spin-off like this to add a new power to the Millenium Ring?
As for 4Kids, what rights did they have? They commissioned, produced & edited a movie & a spin-off series, but aren't they just a dubbing company?
If they ONLY had dubbing rights, wouldn't saying 4Kids original works would be like letting Viz Media or Funimation make spin offs of works they've dubbed? Like a Viz Media spin off of Inuyasha with no involvement from Rumiko Takahashi, or a Funimation spin off of One Piece with no involvement from Eiichiro Oda?
Heck, how much was Kazuki Takahashi involved in Capsule Monsters?
Hopefully someone can provide answers about these.