So there is no reason to believe it will not take an edge, and should shave just fine, again some photos of the whole razor may give up some more information.
Either bevel the edges at a 45 degree, an 1/8 in bevel is fine, angle or round them over with the diamond plate, use lite pressure. If you don’t bevel or round the edge, each lap as the edge slides over the edge, you will undo all the even honing you are doing on the stone face and bevel.
Yes reshape the heel with the diamond plate in the rounded shape it was in before the chip. Take your time the metal is actually pretty thin. Have you honed on the diamond plate?
If not, don’t, it will only cause you more issues down the road.
No matter how many layers of tape you are using, you still have to hone to the edge. Some of the photos show stria that is not reaching the edge, and you need a flat bevel from heel to toe and from the edge to the top of the bevel, and that meet at a sharp edge, that is a fully set bevel. Until then you will be wasting your time moving up to the next stone.
This thread, “
My first honing” is packed with good information and post 41 has photos of the edge, looking straight down on it with magnification. There are photos of the edge almost set and fully set. Until you can look at the edge and not see any shiny reflections, your bevels are not FULLY meeting.