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> 1) Once the staging site is created, will this affect Google crawling of the main site. So, basically, will Google crawl the staging site?
No, not possible as it is password protected and got the no-index meta tag.
> 2)Would it be possible to update plugins and activate new ones only on the staging website?
Yes, sure. It’s an independent website.
> 3) Finally, let’s say I want to erase the staging website after I’ve done with it, however, without removing WP staging plugin since I may need it to create new staging site in the future. Can I do it?
Yes!
And will it cause any issues to the main site?
No!
All the best
René