Best Setup

Also, is it normal to have small window at the bottom right corner that shows Login Status/Log out " Checking Policy"

The way I like to explain Smart Groups vs Static Groups to people is the following....

If your group is can be populated from LDAP attributes for a user, like models, like technology of any sort or if the attribute can be populated by hand or automatically via a script such as user and location information, then use a smart group...it's based on technology of some sort and is constantly updated based on a machine "falling into the group".

If your group is populated manually because someone says "Group person A, B, and C (or machine) together" because a political decision was made to group them together...then a static group is the way to go. The only way one of these groups are updated is if you go in and manually add some more members.

I general, most of my groups I use are smart groups and I try to keep it that way, but not all...both types have their place and are equal scoping targets in Jamf Pro. My static groups mainly revolve around software.

Here's an example from my setup where I use both types of groups....Adobe Creative Cloud 2019:

By default, we give it to the Art and RadioTV labs. When those machines are enrolled, we have them populate the user and location fields of the machine's inventory record via a script. As such, I create two smart groups, one called Art Lab and one called RadioTV Lab. We assign each machine in that lab a Department value of either "Art" or "RadioTV". As such I can build smart groups for each one that contain the value "Department = Art" or "Department = RadioTV". If a machine is ever added to those labs, it would get added automatically to my smart group.

We also have the group of random people that administration has approved giving Adobe Creative Cloud 2019 to. They have to request usage of it from administration. When administration kicks me an email saying "So and So should be given Adobe Creative Cloud 2019.", I add that user's computer(s) to my static group "Creative Cloud Users".

My policy that supplies this software to our users is scoped to all three groups.

Hopefully that illustration helps a bit.

In answer to your second post...it is normal to see that but it can be suppressed by going to your Jamf Pro instance's settings to Computer Management-->Computer Management-Management Framework-->Check-In

You would uncheck the box to "Display status of login/logout hooks actions to users".

I used to suppress that one, but found I like the users seeing that the servers are actually doing things at login/logout simply because people like to complain about login times even when they are totally reasonable. At least the user sees "IT is doing something". In your environment, you may see that as a disadvantage, but for me it shows the user "signs of life".