$(i)$ There exists actions which are neither quasi-free nor faithful. For example, we can take the adjoint action for the quaternion group $G:=Q_8$.
$(ii)$ There exists actions which are quasi-free, but not faithful. For example, we can take the adjoint action for the cyclic group of order $n$ $G:=Z_n, n\geq 2$, or (more generally) the trivial action for any nontrivial group.
$(iii)$ There exists actions which are not quasi-free, but are faithful. For example, we can take the adjoint action for the permutation group of order $n$ $G:=S_n, n\geq 3$.
It is natural to ask whether $QF(\alpha)$ is always a subgroup of $G$ or not. This has to deal with the fixed points of a composition of two functions. The intuition tells us that we can have two functions, each without fixed points, but their composition can have fixed points. This means that, to find counter-examples, we need to look after a "big" group (of functions, eventually). The following theorem clarifies the situation. We shall need the following two lemmas:
Lemma $1$. (see here) Let $M$ be a finite set, with $n\geq 1$ elements. Then we have the following formula for the number of derrangements of $M$:
$$|\mathcal{D}(M)|:\stackrel{not}{=}!n=n!\sum_{k=0}^n \frac{(-1)^k}{k!}.$$
Lemma $2$. (see here) Let $M$ be a set with at least two elements. Then there exists a permutation of $M$ with no fixed points. Equivalently, $\mathcal{D}(M)\neq \phi$.
Theorem. Let $\alpha:{\rm Sim}(M)\times M \rightarrow M$ be the canonical action on $M$. Then: $QF(\alpha)\leq {\rm Sim}(M)$ if and only if $|M|<4$.
Proof. Since $\alpha_f(x)=\alpha(f,x)=f(x), \forall x\in M$, we have $\alpha_f=f, \forall f\in {\rm Sim}(M)$. Thus, $QF(\alpha)=\{f\in {\rm Sim}(M):f=id_M \lor f\in \mathcal{D}(M)\}=\mathcal{D}(M)\cup\{id_M\}$, an explicit description.
For $|M|<3$, we saw that $\alpha$ is free, thus, quasi-free; so $QF(\alpha)={\rm Sim}(M)$. For $|M|=3$, we can compute $QF(\alpha)=\{id_M,\sigma,\sigma^2\}$, where $\sigma$ is a circular permutation. It is indeed a (proper) subgroup of ${\rm Sim}(M)$.
For $|M|=n\geq 4$, we can compute: $|QF(\alpha)|=1+|\mathcal{D}(M)|=1+!n$. If we really want $QF(\alpha)\leq{\rm Sim}(M)$, from Lagrange's Theorem, we must have $1+!n|n!$. Using Lemma $1$, $!4=9, !5=45$, so for $n\in \{4,5\}$, this is not the case. In fact, for $n=4$, the problem is that $QF(\alpha)$ is not closed under the composition of functions. Let $M=\{x_1,x_2,x_3,x_4\}$, then we can give this example (will be useful in the last part of the proof):
$$
f:=\left( \begin{array}{cccc} x_1 & x_2 & x_3 & x_4 \\
x_4 & x_1 & x_2 & x_3 \end{array} \right);
g:=\left( \begin{array}{cccc} x_1 & x_2 & x_3 & x_4 \\
x_3 & x_4 & x_2 & x_1 \end{array} \right);
f\circ g:=\left( \begin{array}{cccc} x_1 & x_2 & x_3 & x_4 \\
x_2 & x_3 & x_1 & x_4 \end{array} \right),\\
$$
where $f,g\in QF(\alpha)$, but $f\circ g\notin QF(\alpha)$.
Now, we are left to discuss the case $|M|\geq 6$. We can write $M=\{x_1,x_2,x_3,x_4\}\cup \overline{M}$, where $|\overline{M}|\geq 2$. From Lemma $2$, there is a bijection $h\in \mathcal{D}(\overline{M})$. We define $F,G:M\rightarrow M$, based on the above $f,g,h$ as follows:
$$
F(x):=\begin{cases} f(x),x=x_i, i\in \overline{1,4}\\
h(x), x\in \overline{M}\end{cases};
G(x):=\begin{cases} g(x),x=x_i, i\in \overline{1,4}\\
h(x), x\in \overline{M}\end{cases}.\\
$$
Clearly, $F,G\in QF(\alpha)$, but $F\circ G\notin QF(\alpha)$, because $(F\circ G)(x_4)=x_4$. This shows that $QF(\alpha)\nleq {\rm Sim}(M)$ , which completes the whole proof.
\end{proof}
In fact, the divisibility that we encountered: $1+!n|n!$ can be further studied, and we obtain a second proof for the case $|M|=n\geq 6$ which makes no use of Lemma $2$:
Lemma $3$. There is no $n\in\mathbb{N},n\geq 6$ such that $1+!n|n!$.
Proof. Let us denote $a_n:=\frac{n!}{1+!n},\forall n\geq 6$. From analysis, one can deduce that $\lim_{n\to\infty}a_n=e$. Motivated by this, our idea is to show that $2.5<a_n<3,\forall n\geq 6$, hence the conclusion. These inequalities are equivalent to:
$$b_n:=\frac{1}{n!}+\frac{1}{2!}-\frac{1}{3!}+...+\frac{(-1)^n}{n!}\in\left(\frac{1}{3},\frac{2}{5}\right),\forall n\geq 6.$$
It can be easily seen that $b_5=3/8<2/5$, and $\lim_{n\to\infty}b_n=e^{-1}>1/3$. Moreover,
$$b_n-b_{n+1}=\frac{n+(-1)^n}{(n+1)!}>0,\forall n\geq 5,$$
which shows that $(b_n)_{n\geq 5}$ is a strictly decreasing sequence, and we are done.