Just some quick and marginally helpful thoughts -
1. Go to a program or approach that has worked for you well in the past and modify as needed. I wouldn't use this as a time to do a lot of experimentation.
2. I would still squat, but only 1x/wk and don't make it a huge priority. But I do think it will be helpful.
3. I would make that decision based on how easily it is for you to gain vs lose weight. I'm not a big fan of dropping wt classes because for most people it doesn't work nearly as well as they think it will. But there are people out there who are very adept at cutting and can do it without sacrificing much in the way of performance. If you're one of those people, then do it.