The first section is where the config files will be created. Just change that to the location you want.
The last portion is the container image on dockerhub. You can specify latest released or specific build.
Once you get comfortable with docker, take a look at docker-compose. It is a slightly different method, but I find it pretty simple to update all my containers at once.
Then you need to check this section of the Z-Wave docs, especially the part after "ha hardware info"and not the one about Docker. The part about docker is for Home Assistant Core on top of docker. It’s a bit confusing because HA supervised also runs in docker
Did you plug in the USB stick after HA was already started? If so, try restarting HA. You don’t need to reboot the entire host, just go to Control Panel -> Server Control, click Restart. Try adding the integration again. Use the path /dev/serial/by-id/usb-0658_0200-if00.