Hello,
1) Unfortunately not, for your compilation restart is switched off, to minimise the number of output files. On USB stick we have limited disk space, and this is not working. To switch it on, you will need to edit arc_length_interface.cpp, uncomment lines 876-880, and recompile code. When you will run the analysis, restart file would be created, and you can use that file as an input mesh, to carry on calculations.
2) Depending on the problem. It is look like a very small sample. Make step size bigger, and see what happens.
Regards,
Lukasz