Sorry i don't quite get your first question. Yea if you feed the unwanted/deformed fry to your fish, then they can be considered live feeder fish too. For example, at c328, i know they sell unwanted betta juveniles as feeders.
Of course they can be kept as normal fish. However, you would have to quarantine them and observe them for a long time (definitely some will die off) and those that survive can be kept like normal fish. Personally i feel there's too much work needed, and its rather risky.
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