Yeah not something you want to do yourself if you have those questions.....
But anyway, 1. You need to replace breaker at panel and get rid off the disconnect outside and install proper outside fitting and a box that supposed to take 110v outlet (and need bubble cover). 2. Yes, just cap it. 3. I would install GFCI breaker at panel and regular outlet outside. You also need to reduce the wire size ends, I doubt you can get 50amp wire properly secure at outlet and at the breaker.
The cable that you ran underground also need to be made for underground, you cant just run any cable.
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