It will not. The M5 is an AR308 pattern rifle. For a 5.56NATO build you should look at the M4E1 Enhanced upper receiver.
The upper has a specialized extension and barrel nut which works with enhanced compatible handguards. The handguard is much easier to install and get/keep straight. I believe it also provides additional heat sinking for the barrel at it's hottest point versus a standard barrel nut design. Just google some pics of "Aero Enhanced Barrel Nut" and "Aero Enhanced Upper" to see the difference. The compatibility with the Atlas handguards makes it worth it for an "enhanced" upper. The Aero Lower Enhanced Receivers have a number of features that make them better than standard.
I would recommend contacting the manufacture.
Yes, they should work just fine.
Yes it should work as long as the lower has been completed properly.
All Aero Precision M5 receivers and Handguards are DPMS Gen 1 High Profile
The Aero Precision M5E1 .308 Enhanced Upper Receiver features the handguard mounting platform forged into the receiver. It will only fit Aero M5 handguards which will include their own hardware upon purchase.
Yes, the M5E1 Enhanced Upper receiver includes the enhanced barrel nut.
The Aero Precision M5E1 .308 Enhanced Upper Receiver is designed to fit Mil-spec 308 lower receivers and should fit your 80%. However, due to potential variations in 80% lowers that can be out of spec, we cannot guarantee perfect compatibility.
The Aero Precision M5E1 .308 Enhanced Upper Receiver accepts standard DPMS .308 components. You can find compatible charging handles by using the following link:
https://www.opticsplanet.com/s/dpms-charging-handle?_iv_categories=charging-handles&_iv_availability=in-stock&_iv_parent-gun-model=dpms-lr-308