When this happens, it is most likely because you are trying to apply with a restricted business: https://stripe.com/restricted-businesses
This could be because you did not provide all the information STRIPE needed to complete your account.
Simply set your payout frequency here: https://dashboard.stripe.com/settings/payouts
Yes, you can register for an "individual account" in the drop down on the register page. You must complete all your info in order for the account to be active. If you don't complete all your info, they might not enable payments or withdrawals.
You need to adjust your dunning settings in stripe to determine when the person should be removed or if their payment should be retried. If you are a smart retry system, it will try a few times before cancelling. You can adjust the settings here: https://dashboard.stripe.com/settings/billing/automatic
The bot will get the information and remove the role. You can choose in STRIPE when you want to cancel the role. Either immediately or at the end of their billing cycle. You can do this after clicking the cancel subscription role in the customer's profile.