Would Apple Pencil 2 magnets will damage the screen on my ipad?

No. Your iPad screen will not be damaged by magnets - whether within an Apple Pencil or otherwise.

There is a hall-effect sensor built-in to the long-edge of the iPad screen that responds to a tiny magnet that is embedded within some iPad covers/cases - that will lock the iPad when the cover is closed. The actual position of the sensor (and corresponding cover-magnet) differs between iPad models.

I don’t think so. I don’t have a Support article that I can use to back this up, I do have two iPads (a 9th generation and a Pro with M1, which means I have both the 1st and 2nd generation Apple Pencil). So while I don’t usually lay my Pencil directly on the screen, I do sometimes and it hasn’t been a problem. In addition, the 2nd generation Pencil is designed to magnetically attach to the spot above the iPad Pro screen.

No. That is where it is supposed to go in order to charge.

So if you meant “can I attach the Apple Pencil to the side of the iPad screen”, that’s totally fine as it’s the docking area designed for it.