I have a few questions [undergraduate], please answer for clarification

If I graduate from secondary school in 2025, June or July, when should I apply for the scholarship, I've heard various things and it's a tad confusing. [It's for the scholarship 2025-2026, and I'd prefer not to take a gap year.]
I've heard you can choose a few universities and see if you get accepted, but can you choose a specific dorm as well?
Speaking of dorms, am I allowed to stay at the dorms for the duration of my studies? [approximately 5 years]
Does a Cambridge certificate for level C1 [CAE] qualify to show my level of English, as it's not TOEFL or such?
Imagine you fail, fail to get into a university or fail to get decent/good grades after getting into one, is the scholarship cancelled? But most importantly, do you have to pay back all the money that was invested in you? [E.g. plane tickets, the year of learning Japanese, etc.]
Do you have to graduate within a time limit / a certain amount of years, do you have to pay everything back if you don't?