First, for context, let's briefly review a key idea behind a CRT formula. Since $\,m,n\,$ are coprime,
by Easy CRT: $\,\ \begin{align}&u\equiv 0\!\!\pmod{\!m}\\ &u\equiv 1\!\!\pmod{\!n}\end{align}\iff\ u\equiv m(\color{#c00}{m^{-1}\bmod n})\ \pmod{\!mn}$
We could write this as $\,u\equiv (0,1)\,$ in $\Bbb Z_m\times \Bbb Z_n\,$ in vector notation (or product rings if known)
Similarly we construct $\,v\equiv (1,0)\,$ in $\Bbb Z_m\times \Bbb Z_n.$
So $\,x =av+bu \equiv (a,b)$ is the solution of $\,\begin{align}&x\equiv a\!\!\pmod{\!m}\\ &x\equiv b\!\!\pmod{\!n}\end{align}$
i.e. the "basis" vectors $\,u \equiv (0,1),\, v\equiv (1,0)\,$ span $\,\Bbb Z_m\times \Bbb Z_n\,$ so we can construct any solution from them. As explained here this linearity is the key idea behind this common CRT formula.
Question $(1)\!:\: $ $m(\color{#e40}{m^{-1}\!\pmod{\!n}})\,$ is incorrect notation. It should be $\,m(\color{#c00}{m^{-1}\bmod m})\,$ as above.
Question $(2)\!:\: $ moot with above fix, since we now have a mod operation, not another modulus.
Remark $ $ More precisely: $\,u\bmod mn = m(m^{-1}\bmod n),\,$ i.e. it is already reduced $\!\bmod mn$ since $\,m' = m^{-1}\bmod n < n\,$ so $\,mm' < mn$.
The point is that we need to compute an inverse of $\,m$ modulo $n,\, $ i.e. as an operation in $\Bbb Z_n,\,$ but there is no common notation for that other than $\,m^{-1}\bmod n.\,$ We could use modulus subscripts on the operations to denote operations in $\,\Bbb Z_n,\,$ e.g. $\,a+_n b\,$ but this notation looks confusing in exponents $\,m^{-1_{\large n}}.\,$ Using notation $\,m^{-1}\!\pmod{\! n}\,$ is bad because it promotes confusion between mod as a congruence relation vs. operation - one of the most common sources of confusion for those first learning modular arithmetic. This may be the intended denotation if your notes define $\,a\pmod{\! n}\,$ as the congruence class of all integers $\equiv a \pmod{\!n},\,$ commonly denoted by $\,[a]_n\,$ or $\,a+n\Bbb Z,\,$ and they define arithmetic of these congruence classes. Otherwise the notation is undefined so it is meaningless.
One way to correctly write what your notes intend is as follows:
$${\rm if}\ \ \ \color{#c00}k\equiv m^{-1}\!\!\!\!\pmod{\! n}\ \ \ {\rm then}\ \ \ \begin{align}&u\equiv 0\!\!\pmod{\!m}\\ &u\equiv 1\!\!\pmod{\!n}\end{align}\!\iff\ u\equiv m\:\!\color{#c00}k\!\! \pmod{\!mn}\qquad\qquad$$
We can't substitute $\,m^{−1}\pmod{n}\,$ for $\,\color{#c00}k\,$
on the RHS because that part of the LHS ternary congruence relation is not defined by itself. If instead we replace the LHS by $\,\color{#c00}k=(m^{−1}\bmod n)$ then we can substitute into RHS, yielding what I wrote above.