Agree on the first.
On the second question, I would say that this would normally be the case, but I would propose that in the unique situation where Grapes is used, he
is defeated.
Here is my reasoning: Grapes has a cost-benefit, and the cost must complete before the benefit occurs. If you Grapes the
entire side of the battle (last EC on that side of the battle), then that character is already in the discard pile when the benefit goes off, or else it is unable to complete. At this point, only AS is in battle, and the shuffle is being resolved. It is not mutual removal at this point, as only AS is being removed. I see it as similar to a CM + AotL situation. If there is one hero and one EC in battle when that goes off, they are both defeated. Having the two different abilities on Grapes, one of which that is required to complete before the other, would lead me to say that each EC is being defeated.
Of course, this depends on whether mutual removal is defined by the ability or by the card, but this is how I would read the rules. Interesting question