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I usually find that the distance updates every 300m (although I've heard that for some people or areas it updates as different frequencies. If you stop walking it will update the distance you've walked with 5 minutes (roughly and could depend on area as well)
also don't forget that it picks up distance in a straight line so if you walking up a winding path then it will take your distance at a certain point then take your distance either 300m or at a timed interval.
No, walking in small circles works, it does not need to be straight lines.
It only updates every few minutes. So if the egg needs another 150 meters, so you walk another 150 meters, there will be no immediate effect. Wait a few minutes until the distance gets updated, then it will hatch.
