Unfortunately UPBGE is not fully supported. Most features of the addon should work but there may be issues with material prioritization that was added with the updates. If UPBGE replaces the old game engine in blender I will ensure the addon supports this, but until then it will only work fully with the game engine that comes packaged with blender.
No, it cannot, this will only work in the Blender Game Engine (because of the python scripts).
To use animated textures, you can record output from the game engine with standard screen capture software (Nvidia shadowplay, bandi-cam, CamStudio etc.)
No, to fully utilise this addon all you need to do is have a basic understanding of logic bricks which are relatively straight forward (input--process--output).
No programming knowledge is required.
To use the addon: No
To make a game: Yes, however, the addon comes with a demo game file which you can use as reference and there is plenty of BGE tutorials to help you get started.