I think it is pretty clear that the cardholder (which can be an AU) has to be one of the people traveling.
So it seems (assuming Person 1 is not traveling):
1 - the second #1 in your post): No
2) No
3) No
Who is eligible for the first checked bag free benefit?
Any Atmos™ Rewards Ascent Visa Signature®, Atmos™ Rewards Visa® Business, or Atmos™ Rewards Summit Visa Infinite® cardholder who purchases airfare with their card and has an open account at the time of travel is eligible to receive one free checked bag for themselves and up to 6 guests traveling on the same reservation on qualifying reservations.
The Free Checked Bag Benefit is only available on flights marketed by Alaska Airlines and Hawaiian Airlines and operated by Alaska Airlines, Hawaiian Airlines, Horizon Air or SkyWest. Flights with oneworld® partners are not eligible for the Free Checked Bag Benefit. If your flight connects to or from another airline, standard baggage fees will apply. Airfare must be purchased with your card to qualify for this benefit. The benefit may not be applied retroactively, and no refunds will be issued. Not applicable for guests who already receive 1 or more free checked bags.
Airfare purchases made with your card through a third-party merchant (e.g., travel agency, wholesale club) may not be eligible for the Free Checked Bag Benefit.
Primary Cardholder must be an Atmos™ Rewards member. Baggage restrictions apply. Visit Bag Rules for complete baggage rules.
What if a primary cardholder bought the ticket, but someone else is traveling.
An eligible primary cardholder, authorized user or joint cardholder of the card must be traveling to qualify for the first checked bag free benefit.