Yes, Yes it does drop additional copies of the items from the fights including recipes for example Zexion drops 1 Lost Illusion, and 1 Book of Shadows Synthesis recipe each time you fight him again. that said I don't know about the keyblade from Sephiroth (Fenrir) because that actually comes from a cutscene after the fight and most mods that make Sephiroth refightable don't trigger that scene so you probably won't be getting a second Fenrir sorry.
R2 is the button on controllers that switches targets during lock-on when combined with the control stick, or "Fix camera (with field camera on Auto) / Set camera to Auto(with field camera on Manual)"
see which keyboard/mouse buttons correspond to one of those controls, and try to hold that down as you enter a room!
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see which keyboard/mouse buttons correspond to one of those controls, and try to hold that down as you enter a room!