Basim, apologies that your question wasn't noticed sooner.
1. No, it is not possible to have dedicated IPs for just the devices you use in FTL. All FTL devices are a common resource in a shared lab. Any given device may be running untrusted code from third parties.
2. FTL does protect device logs and sensitive info. Virtual devices are deleted after each test run, and physical devices are thoroughly cleaned up after each test run. Logs from your test run are stored in an authenticated database that only your Cloud/Firebase project can access. Note: the logs can also be accessed by members of our team's on-call rotations if they are asked to debug an issue.