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Two questions about applying this feat.
1)Since the animal companion changes to a magical beast does it gain a d10 hit and fast attack progression? I'm on the side of no but was wanting to hear from the community.
2)The celestial template grants SR equal to CR+5. However animal companions don't have a listed CR so should I reverse engineer the animal through the monster building rules or just ignore this part of the template and move on?

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I would suggest using its hit die to calculate SR, using the CR +1 modifier suggested if it has more than 5 hit die. I don't believe the change from the feat was intended to increase your attack progression or die size, just your base type. I think in this case " An animal companion's base attack bonus is the same as that of a druid of a level equal to the animal's HD" applies regardless.