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You talk to the guy on the outside counter. Not the inside one. There are 2 counters.

Just talk to the guy at the counter of a stable. 20 Rupees to name it and get a saddle + be able to board it. You can take it out at any stable, abd if you left your horse in the wild somewhere you can still take it out of the stable and they get it for you.

You can choose to to upgrade the first time you pray. Then the gane continues on. I accidently did so

Not true. In fact, you don't have to get a stamina upgrade or heart container to leave the great plateau.

I've not encountered a circle of glowing animals , but I knoe that if you shoot the rabbit it drops Rupees.