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1. To create variation with images swatches you need to go Products->Attribues, create some attribute and then create attribute’s values. Inside of this value you will see two fields “Image preview for this value” and “Color preview for this value” that will add swatches to this attribute. Than you just need to create variable product and use the attribute for product variations.
2. No, WPML is not embedded in theme, but our theme is compatible with this plugin and will work correct. If you will face any issues just write us and we will fix this for you.