1) Yes, you should use the Neumann boundary condition on the right-hand face of the surface configuration central region (towards vacuum).
2) After some testing, I think the problem you see is due to k-point sampling. As usual, the electrode should not be too thin, but I think your electrode has an OK size. But your k-point grid does not sample the Gamma point (because it is a even grid, 8x16 in kA,kB), so the electrode Fermi level may not be well determined. It is very important to accurately determine the electrode Fermi level in one- or two-probe calculations. In fact, this is the main reason to use many k-points along C for device electrodes. I suggest to use a Gamma-centered k-grid, either of the form 5x9x100, or by enabling "Shift to Gamma" in the Script Generator.