They stack, so adding it to your account extends the expiration date
My biggest worry with this scenario is you are buying from a gray area Market. If you wait a few months to redeem the code it might be expired/redeemed by the time you try to redeem it and it will probably be too late for you to get a refund.
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Chances are they will still apply, but there could be an enhanced version of Sony's subscription service that supports the more powerful ps5 console, hence the discount on the legacy memberships.
When there is discount on membership, all the major stores (Target, Walmart, Amzn, etc) and Sony as well sell it for that price. These are just 3rd party resellers
So if I get this now do I get the free games that they gave in previous months? Also will those games be available for the PS5's backwards compatibility?
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No, those are gone for good unless they ever repeat, which (thankfully) is rare.