So, for the 'pen and touch problem' there's an option you can disable from the settings of your pc: Devices -> Pen&Windows Ink: "ignore touch input when I'm using my pen". This option exists for Surface Pro 7, idk about 2.
As for the hold & release button thing, I have a funny roundabout: go to "Edit Layout" for your artist pad, then click on the button you wanna change. Set it to "Frame (with L drag)" and then tick whichever secondary button you want from below (in your case Alt). This button is supposed to be a touch-pad-like substitution, but it does the job for a "hold & release" button. Funny.
Anyway, I know it's been 2 years since this post has been written but I figured it's an important thing to share.