1.) If it is possible to design forms in 96 DPI using a 120 DPI Win 8.1 machine, please point direction to read-up on what I can do so my program will have same design DPI in all forms.
I guess it is possible, but more effort. eg: If you design the forms using Lazarus Form Designer and you want to design at 96dpi, then you need to first set Win 8.1 into 96 dpi mode, then launch Lazarus. Afterwards quit Lazarus and set Windows back to 120 dpi.
From what I understand, you don't have a 96 dpi system any more (or prefer not to use 96 dpi). In that case I would review all existing forms and fix them for 120 dpi (or whatever you use now) - then set a constant in your app to say the design dpi was 120 and that will be used by ScaleDPI().
¿Is this correct? I understand using the Graeme/Microsoft manifest
I don't know what the checkbox option in Lazarus does. I do know that the manifest file I posted earlier works on all DPI's I tested under Windows.
Any tips on where it might be lacking, or where it is failing or must be tweaked for a specific program/result?
Images... The ScaleDPI will scale image - which are bitmap images. Scaling images up creates fuzzy looking images. So use hi-res images if possible or switch to SVG.
4.) ¿Why is the 96 DPI form in your screenshots smaller than the rest?
The form was designed at 96 dpi, so when Win 8.1 was in 96 dpi mode, that is the exact size I saw in fpGUI's Forms Designer (on my FreeBSD system). If you scale the form (to larger dpi values) you can't just scale the form's content, you need to scale the physical size of the window too - otherwise the content will not fit inside the window. So on >96 dpi, the window becomes bigger to match the growing content.
NOTE #1:
If you look at the various DPI screenshots I shared, the Windows Explorer, Start Menu, desktop icons they all increase in size too, as the DPI value increases.
NOTE #2:
The screenshots of the test application is a fpGUI based application. I can only say accurately how fpGUI based applications handle scaling. LCL (Lazarus Component Library) based applications font handling isn't that great, and I honestly don't know how they work or how they would scale (up or down). I can say that the ScaleDPI function I used in fpGUI is very similar to the one on the Lazarus Wiki.