Hello,
First of all thanks for choosing our Theme, we are glad to be you in WoodMart WordPress family :-)
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1) Raw html tags were shown as it, because inside the hotspot content box, the tags not working inside the link tag, also the defined classes did not support tags. So its better to remove those tags from your products.
2) You can choose “Default” option for hotspot image, there are only two choices for icons ”Default” and “Alternative”, you can not use animation/gif/something else for icon.
Screenshot for clarification: https://jmp.sh/ynUEjXd
3) Yes, sometimes it happens the plugins did not update directly so the second method is to uninstall the plugin and install it as new, to get the latest version.
Best Regards.