It’s unlikely to run into issues with a small library, but as you add more folders to your library, the number of inotify slots increases, and it sounds like you’re just now hitting the limit.
Not that I know of. Some browsers might have slightly better support than others, but you’ll e.g. never get DTS audio to direct play.
The link in my first comment should be the resolution (and this post goes into a bit more details about why the inotify causes EAE errors).
