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Will the user have to update their desktop designer licence version to the new one to maintain continuity?
Not needed. The designer can be on the same or lower version than the server
Will there be any new requirements to run previously generated scripts?
No, but the opposite happens. If a user with an older version of designer tries opening a workflow from server created with a newer version, the user is not allowed and will receive a message about it. (not entirely sure if you are unable or if you only get a notification about it)
A user is getting AMP is not checked on server, but in the designer config info it says AMP is checked by default on server.
When I checked the Alteryx system settings, I found AMP Engine option is 'unchecked'. If I check the option & restart the services, will it resolve the issue?
Yes, you must check the box on the controller > general as well as on the engine > general