To answer both your questions in 1 word - YES .
I recently bought a 2016 L&K & traffic sign recognition just needs to be activated using VCDS, also did you check if the leds on the fan dial lit when knob was rotated, some were not so, these would need to be coded on as well.
If you want the paddles you will need to buy the paddles with wiring loom to connect in, then this will also need coding in with VCDS. Its easier for the VCDS owner to do both paddles and traffic at the same time. Price the whole job up 1st then decide. Personally if you have the DSG why bother with paddles, might as well just have a manual.
When I bought mine, I have a friend here in the South East who has the full blown VCDS and knows his stuff, to plug in and check for errors, he activated everything that could be & even permanently switched off the stop start ( so I do not have to press the deactivate button every time I use the car) .
Word of advice If you want anyone to do any VCDS work on your car make sure they come well recommended and have done paddle fit before, get this wrong and it can cause major problems, just 1 setting out and you can have very strange effects. ( I fitted a MFSW and when it was coded in the horn stopped working was very simple to fix as the guy knew what he was doing ).
good luck on your choice