On satisfiability for 2-variable FOL being NEXPTIME-complete
Regarding your first question: I haven't read the paper, but I guess that the proof of the second lemma is by a polynomial time reduction from a generic $\mathbf{NEXPTIME}$-hard problem. This establishes $\mathbf{NEXPTIME}$-hardness. Membership in $\mathbf{NEXPTIME}$ is by the first lemma. Regarding the second question, your guess is correct.