Few important questions related to matches and tournaments

Question No. 1
One of our regular user (Gamer Role) created a tournament however he is only getting tournament type as knockout. I have activated all other tournament types in the theme options under tournaments option. Can you please let me know why the user not able to set ant other type of tournament.

Question No. 2
As admin when I edit the user I see this option “Allow user to create teams” and “Allow user to create tournaments” as a regular user these checkboxes are shown as disabled but still a user is able to create a team and tournament. I wanted to understand the purpose of these options.

One probable answer to this question in my mind is that if i have disabled users from creating teams and tournaments from settings of theme options and exclusively when i want to provide access to certain users then this option come into play. Correct me if am wrong here.

Question No. 3
When teams join the tournament and say the tournament is scheduled to start at a later date how will the matches appear on the matches page. Is it that the owner of the tournament has to create those matches or we as admins of the website have to create those matches or is it that the teams themselves have to challenge each other.
In the theme options i have selected following options.

Ladder Challenges = 2
Ladder challenges charges = 2
Ladder challenge decline charges = 2

Does this mean that even in a knockout type tournament, these settings will apply?