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If you are DIY savvy you could easily do the tile part and then have a carpet installer come in to trim and secure the carpet edges.
Yes it can! Use DTM (direct to metal) paint. It is good stuff 100% Acrylic. They also have spray cans available for painting metal. It also helps to wash the surface and even give it a light sanding.
If the wood is not to far gone there is a product called "wood hardener"
That can be applied to beef it up some....In extreme cases missing or completely destroyed wood can bill filled with a "bondo" type wood filler. This can then be sanded and shaped to match the existing frame. When all is complete paint it up.
If this is inside...this might be due to heavy condensation...so you may need to look into ways to limit this in the future.