swinging third strike

[DG]

1. F2 caught the ball it appears. I am confused by the mechanic, pointing with index on right hand, I thought we signal no catch with a safe sign and verbalize no catch, so even if PU thought he did not catch the ball, the mechanic is confusing.
2. No KO, since the batted ball did not go directly to the mitt first. Can't blame the PU though because he does not have a good view of the stealthy move to secure the ball into the mitt.
3. 1b occupied, but even if not, isn't the rule now that if batter moves outside the circle around the plate now without attempting to go to 1b he is out?