I'm not really sure, but it's definitely accumulated by HP Rates of what the other person's is sending the Data to you, lower triple digits give V1s, middle triple digits give V2, and higher triple digits and past 1000 HP give V3. I'm not totally sure about the Continue+'s. I don't think it's true because I haven't seen that with my games.
They usually come up in the same area for their location as their other version counter part, so that there's a Random Encounter in every area. You can fight their set Encounter V2~3 in the Area they become Random in. I forget about acquiring their DS Chips though, it's been a couple of years since I personally started over, and I already have a complete Data Library on Playthrough 4 for my last Playthrough.
I highly recommend sending them on Playthrough 2 or 3, then deleting them as you defeat them in the Tournament that way the Shared Navis don't get all scrambled when you fight those. You'll get repeats if you have their Data in just like you would through next Playthroughs.
They are not since they're Event Chips. Event Chips for EXE2, 3 (no Punk P for Data Library), 4, 5GBA, & 6 never go into the Data Library.
GrandPrixPower G and Duo D work fine on English games, but their made up data made by an Card e-Reader+ and using the Special Chip Transmission Card for that device will not be presented in an English game. As the Card e-Reader+ isn't compatible with English Regions.
Hacking it on an English or Japanese game without the Card and Card e-Reader+ device results in having a Blank Chip with no picture, description, and name.