1) I don't want to get into a debate about what is what but souls that are fully free in God and born out of freewill to help enlighten the world are avatars. Babaji Krishna is widely known and unmistakenly as a Avatar. Lihiri Mahasaya, Sri Yukteswar, and Paramahansa Yogananda are all Avatars as well. The lives they lived and the deep spiritual wisdom they exemplified are nothing but what an Avatar could exemplify. They are as bonafide as it gets because they are manifestations of pure God. God was the only thing that is expressed in their consciousness.
While I agree that the God is fully expressed in such free souls who come to the world for people's benefit, I clearly draw a line between the Avatar who is God Himself (e.g. Lord Krishna) manifested in such Saints and the Saints who are the body through which God is manifested (e.g. Sage Narada, Shukdevji etc)
Regards,