I don't remember the steps, but its either in a menu or you can press and hold the foreground object to make a "cut out" of it and paste it in a different app. https://youtu.be/qX82kIaRNKA?t=15
Nope. This works on any old picture you can view. Just as the text highlight in a picture is also os wide. Just background AI processing. It’s very neato