I received following from PS Support re: Problem #1:

"You spoke to Amber regarding an unexpected behavior experienced in Intuit ProSeries Professional. We promised to send you periodic updates on case number 15111864244 to keep you informed. Below is the latest update:

The unexpected behavior with the Pennsylvania Local Earned Income Tax Return printing with the watermark, \"Do Not Mail,\" has been resolved in a recent update of the ProSeries program. Please update your ProSeries program by going to the Updates menu and selecting update installed products.

No further updates are scheduled for this Investigation. This will be our final communication for case number 15111864244

We thank you for your patience.
Intuit Customer Success

(no news yet about Problem #2)