Q1: yes
Q2: yes
Q3: Just tell ATC that you'd prefer to hold at the CATII/III stop bar for the time being, until the other oke has landed and that you'll comply with his/her instruction once "low vis in force" is no longer a factor and the runway is clear and no one is on the approach. Just state what you want and what you think is amiss. Possibly someone made a mistake. Never just blindly follow ATC instructions... please