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If the phone is working correctly in this mode, this indicates there is a third party app causing a conflict with the device. In this situation I would advise to remove the downloaded apps one by one to identify which app is causing the conflict.
However, due to the extra issues you have noticed in safe mode, I recommend running a software repair on your handset instead.
Depends on what is causing the issue. In most cases, yes. Large battery drain is often caused by background apps straining the CPU, which is why you would feel the phone getting hot too. More stress on the CPU means the CPU gets hotter and has to use more power.