1. Your CN is quite low. Go ahead and get ready now or ASAP, in order to be able to proceed with the next steps such as submitting the DS260 forms, making the DV administrative fee payment, completing the medical reports (you cannot initiate any of these 3 without being married first), and putting together your documents to enable you file as soon as your CN becomes current.
2. Filing an AOS based I-765 has no impact on your current status. However use of an approved AOS based I-765 automatically terminates your current status and puts you in what is known as adjustment pending status. Also be aware of the additional fees tied to filing an AOS based I-765. It is therefore highly recommended to maintain current valid status (where/when possible) until your AOS applications gets adjudicated. Having a valid status throughout the process ensures you have a fall back status in the unlikely event the AOS applications gets denied.
3. While DS260 submission is not mandatory for DV based AOS filing, its submission is recommended especially in this case as you were not listed on the initial entry submission. DS260 not only enables you to have a paper trail of your relationship, it also helps the KCC with forecasting the VB progression as it provides more insights into the number of selectees planning on proceeding with their DV selection. You do not gain ANYTHING with not submitting the DS260 - non submission of this form will not absolve you of having an immigrant intent, if you were to file for a NIV in the future if for some reason the AOS application gets denied.
4. Take a look at the FAQ section of the AOS process spreadsheet.
Overall recommendation: spend some more quality time going over the AOS process spreadsheet. There are several tabs on it, carefully go over each one of them. Also review the DV Tracker - Unique Cases spreadsheet. This tool equally has a couple of tabs you should carefully go over.