There is a slim chance you can. At 200 yards with a max magnification of 20x, your target will appear around 10 yards away, so if you can see a 223 hole on paper around 30-40 feet away without magnification then yes. Realistically a spotting scope would be better suited for this purpose, any reactive or "Shoot-N-See" targets would also be beneficial to make out that small of a hole.
Minimum parallax-free distance is 75 yards for this scope.
Leupold states this regarding their VX-3i CDS scopes: "The CDS model VX-3i series scopes can be reset to zero by loosening the set screws and indexing the dial at "0." The Non-CDS models will feature an indicator ring that can be indexed to "0" before reinstalling the adjustment cover."
The eyepiece diameter is listed as 1.60".
You would need to go with a VX-3i LRP model to get a dedicated MOA reticle.
Leupold does not offer this VX-3i 6.5-20x50 with an illuminated varmint reticle.
Yes, these are second focal plane.
Yes, every CDS model scope comes with a standard scale dial and a coupon with instructions on how to get your free custom dial tailored to your specific ballistics.
The CDS System works by laser-inscribing your scope’s elevation dial to match your load, velocity and conditions. Your scope will be in perfect sync with the way your rifle and load shoots, even for hand loads.
It depends on the model. The only ones that can focus down to 30 ft are the EFR or Extended Focus Range models.