That's also my understanding, and iirc the CAS verdict showed that UEFA had discussed this with City back in 2014 and were happy with the outcome. Therefore if the PL are claiming we overstated our sponsorship income on the basis of the Etisalat arrangement, it's hard to see how they can land this.
The former is correct.
We don't know for certain but there appear to be three core charges - Mancini's Al Jazira contract, the Etisalat sponsorship and image rights payments to players. These have been stretched out over multiple rules and multiple years, plus there's other charges arising from those that won't stand if those specific charges aren't upheld.
UEFA knew about Etisalat and image rights payments well before 2018 yet didn't charge us with any offence (although Etisalat was probably time-barred). They also knew about the Mancini contract in 2018, as a result of the Der Spiegel leaks, yet didn't charge us with that either, despite all the documentation being revealed. We don't know if UEFA discussed it with City as part of the charges that led to CAS, and it didn't come up at CAS so the assumption must be that there wasn't much mileage in that contract.