The answer is here:
FCL.910.FI FI – Restricted privileges
Regulation (EU) 2020/359
(a) An FI shall have his or her privileges limited to conducting flight instruction under the supervision of an FI for the same category of aircraft nominated by the DTO or the ATO for this purpose, in the following cases:
(1) for the issue of the PPL and LAPL;
(2) in all integrated courses at PPL level, in case of aeroplanes and helicopters;
(3) for class and type ratings for single-pilot, single-engine aircraft, except for single-pilot high-performance complex aeroplanes;
(4) for the night, towing or aerobatic ratings.
No you can't teach for a CPL except in the case of (a)(2) a rather daft provision because a restricted instructor is not the best person to be teaching basic skills on an integrated course. In the 20 years since this was introduced I have never seen any Integrated school use FIs with a Restriction.
The 500 hours is total flight time in the Category, Aeroplane or Helicopter.