Hi,
I can help with that...
1. The help file is pointing to the Server/DC version of Zephyr Scale. The Cloud version does not have Issue or Test Library reports, at least not yet. I believe this is being considered
2. I can confirm I observe the same behaviour. Is that what I would expect, no, but there's also no alternative configuration option. Another thing to consider on this report is that the Closed column is linked to the Resolution status in Jira. If your Jira workflow isn't setting a resolution status, your Issues will appear in the report as Open, even if they are showing Closed (but not resolved) in Jira.
In cases like this item 2 above, depending on how important the requirement is, I export the dataset into Excel and produce my own report. Burn up/down reports is another example where the report is not working as expected.