Y
You can armor through, but it's distance related and unreliable. Usually better to block the whole thing since it leaves you at 0 anyway.
No, you can just mash armor while blocking and if there is a gap Kung Jin get's punished (super heavily) 100% of the time; if there isn't you are still totally safe because your character is still blocking and nothing comes out.
The gap is present very often when using MB low chakram on block, pretty rarely when using MB chakram.
We all should be very careful: it's pretty dumb that I have to spend a bar to MB my projectile and randomly die if the opponent blocks, I hope NRS fixes it....this is something that potentially kills the variation in the future.
It is not range dependent I tested it. It can form at any distance...and it is not related to the character stance too. Looks very random.