1. The last IFR flight I flew my co-pilot was reporting my altitudes 500' above my actual. With this latest VFR flight the same thing happened.
You were at an altitude of about 7790 feet which got rounded to Flight Level 8000.
Remember to reset your altimeter to 29.92 (or 1013.25) above the transition altitude (ATC will then say "Flight Level 75" instead of e.g. "1 thousand 5 hundred".
I assume your altimeter was set to something around 29.67.
2. This time though the the VFR Radar Control got stuck in a circle as well.
The default center altitude is 8000 feet. You should set your center altitude below your cruise altitude in Options #2 (or your cruise altitude at or above the center altitude). Maybe the fact that you scratched center altitude due to problem 1 contributed to this ping pong effect, but even without that you would receive more hand-overs than usual.
It seems PF3 may be breaking down and needs re-installing, or, maybe, as usual, I am doing something wrong?
Even if above things would be bugs in PF3, a new installation would not fix them.