Be happy to answer them QT

1. The publicly stated answer is that the vaccination (the first one given on the 5th year) that was administered through the centralnet worked like a sweep and hard reboot to the entire population. Those that were healed were basically cleansed of any bugs or glitches that made them vulnerable to an infection from the virus that spread at the time. Those that survived of course retained their faculties. The official statement regarding the deaths that occurred was due to an aggressive reaction to those gravely infected. "In an attempt to eradicate all errors present in the victim's cyberized brain, the sweep protocol of the vaccination replicated exponentially in those who were in the worst stages of infection." It basically deleted their brains. 

2. People have been known to fake the psych-tests and pass as good-natured citizens when they're really cold hearted bastards. The crime rate in the outward district is a testament to that. Byzantium's justice system is pretty straightforward. They'll attempt to rehabilitate you for soft crimes, but murder is handled immediately. An appointed judge from Beacon weighs in on the final verdict after all manners of evidence are presented to him by the BPF. You are clear of charges if there is concrete proof of self-defense, otherwise you're either executed and harvested for organs, shot out as space junk, or mindswept (basically a reprogramed shell of your former self).

Should also be noted that guns are illegal. Stun or concussive type weapons are the standard, and they're only issued to BP officers and citizens who have been screened for self-defense intent only. However, BPF is attempting to crackdown on gunsmiths popping up around the Outward District. They must be getting their parts from materials processed over at Crater Bay....