States/Airlines can make whatever rules they want about dumping fuel / altitudes, but in "emergency" (which EO is) crew will do as they see fit. You can see from the pics it has largely dispersed in a fuselage length behind the aircraft.
Description above seems classic stall/surge - visually/audibly dramatic, but probably not an "engine fire". However, "dramatic" or "harrowing" the press reports are, it seemed a fairly normal approach, landing and parking at the gate
NoD