hi! you might need to also back up the world files in the generated worlds folder. it's kept in app data, which by default is a "hidden" folder, so you'd need to enable viewing hidden files if you haven't already.
the path should be similar to C:\Users\sindalee\AppData\Roaming\7DaysToDie. compare the contents of the mod launcher save, i have no idea if it also keeps your world in there also. if you need more mod launcher help, i'd head over to sphereii's thread for the mod launcher itself.
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yes. with the addition of lights as mods in a17, when you have multiple light sources, you need to do it the clunky way. if you only have one mod providing light, just hitting the keybind as normal triggers whichever mod it is.