I will let others who know the nuances of the game play address your first paragraph. I will, however, address the second.
Please familiarize yourself with the information in the FAQ section over to the right of these post. It's actually pretty thorough. ----->
In the section marked "Mulligans" is the following
If you use a mulligan during a Practice game, the ball you are using will be degraded by two hits instead of one hit. Mulligan putts will also degrade your ball by two hits."
No surprise, nothing sneaky about it. The search box, also located over on the right, would lead you to a lot of other discussions about it too.