Inert flesh means it's like a sculpture made of meat rather than an actual body IMO. Whether that meat is more like beef or pork or chicken isn't really covered anywhere.
Not covered anywhere. If I had no reason for any particular kind I might default to the same as the spellcaster.
There's no such thing as a bralani azata, either, but fortunately this is Pathfinder RPG. You get unspecified flesh. Work with your GM if you want something specific, but it's likely to be more or less homogenous tissue rather than a fully formed organism--think a statue made of skin, or liver, or cardiac tissue, or intestinal wall, rather than a dead body with all of these things in the right place.
Edit: I always imagine it as early vat-grown meat--tissue grown in a certain pattern (e.g., striated) but without any larger structure. Wibbly-wobbly and impossible to animate short of animate object, which would be . . . hilarious?
Stone that gets turned into Flesh wouldn't produce edible meat in the slightest. Edible Flesh and Meat require oxygen and nutrients from blood circulation, and stone wouldn't have that. It would be like eating cardboard, and if you ate this for any length of time, I'd expect your internal organs would start shutting down from poisoning. You'd be better off starving than eating that.
Ever see the documentary "Super Size Me" with the guy that ate nothing but McDonalds for 30 days? His doctor stopped him 21 days into the experiment because his organs were failing, because that food is essentially warmed up garbage. Jesus fasted for 40 days in the desert and his organs didn't shut down, and other people have fasted for longer than 21 days without organ failure too.
As far as the OP's question and creating life? I agree with Lady Asharah, that thing has no skeletal structure and it would turn into a lifeless blob of fouler-than-troll-smelling dead flesh.