What is the objective of analysis and what is the outcome expected? If you want to find stress distribution due to inertia load (angular velocity), apply it as a load (rotational body force) and specify angular velocity or acceleration as desired.
It seems the disc is hollow as I can see gap between inner edge and the axis. In such case, no need to apply radial BC. On the bottom point of the inner edge apply UZ=0 (along axial/vertical direction) through BC - Displacement/rotation - check U2 and enter 0. This will arrest rigid body motion of disc along axial direction.
1. Yes. In this simulation, the disk is assumed to rotate freely without any constraint. To avoid rigid body motion, UZ or displacement along vertical direction at a point (node) need to be restrained as shown in attached file.