With VSA, we support protection of VMs running in RHV / Ovirt. Protection of VMs running on unmanaged (by RHV/Ovirt) KVM hosts is currently not supported.
To answer your questions, #1 we do need the proxy to be present in the RHV cluster that needs to be protected. #2 is not supported as explained above.
Please let me know if you have additional questions or need more clarification.