Yes, the magnifier will work with that red dot.
With modification. The cantilever mount is too high to work with absolute co-witness magnifiers and according to Holosun you must replace the cantilever mount on the HS-506 with one designed for either absolute or lower 1/3 depending on your height preference. The magnifier comes with a spacer to add for lower 1/3 option but not a spacer to work with the 506. I ended up going with a Vortex CM-305 mounted backwards to get the right height and to clear the battery compartment on the 506.
Maybe. I’m in the process of contacting Holosun as I just mounted my 506/3X combination and the magnifier is about 0.1” low compared to the red dot optic. Using the included spacer that came with the magnifier puts it about 0.1” too high. I’m waiting to hear if they have a half size spacer. The original spacer is 0.22” and it looks like a 0.11” world put it right on the centerline of the 506. Time will tell...