Page 204 has the sidebar explaining how Grunt statblocks mean. There it lists the following:
AC - Action allotment (the actions they have
available. A: Major Actions; I: Minor Actions)
CM - Condition Monitor (the number
Note that Fire Spirits, combined with the Movement Power, are OP sprint-wise... -,- I'm definitely houseruling all spirits to +1 per hit.
In previous editions, Exotic was indeed rolled for the attack.
Note that Spirits are NPCs. The GM has the final say over them, you don't get to control them as mindless objects. A GM can allow a player to state the actions, but they're also in their right to run the Spirits as full-fledged NPCs controlled by the Spirit. "Keep me safe against these guards" CAN be interpreted as 'Okay, I'll just grab you and jump out the window with you' if the Spirit decides to rulelawyer because you pissed it off.
As for Confusion, I'm guessing they made a mistake and replaced the SECOND sentence when they should have replaced the THIRD sentence. The pre-errata PDF lists this as second sentence:
"The critter makes an Opposed test using its Magic + Willpower against the target’s Willpower + Logic."
To that we add its now-second-really-third sentence: "If the critter scores any net hits, the target character gains the Dazed status and the Confused status at a rating equal to the net hits."
Engulf is phrased poorly, but to me it sounds as if the elemental effects OVERRIDE its default damage, not come as second set of damage.