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While the Sergeant and Commissar are both alive, is the IG squad Stubborn 8 or Stubborn 9? Simply put, does the Commissar always confer his LD of 9 to the squad.

Yes, iirc. For summary execution, he first kills the sergeant, then picks off normal guardsmen.

Yes, it's LD 9. He doesn't have to cap someone any more for them to use his LD.

Yup, they use the highest Ld in the unit

Which is why you never take on in a platoon command squad, knowing is half the battle.