Question Cycle/Loop Connection on Capture Card

Aug 20, 2019
So i'm planning to buy a capture card (Probably Avermedia LGP Lite since its cheap), but i have some questions about capture card (the first 2 question might be dumb questions but i'm curious though)
  1. Is it possible to have cycle/loop connection (or whatever it should be called) on capture card? What i mean by cycle connection is when you connect PC A as input device to a capture card which is also connected to PC A so i can record PC A's Output from PC A (?).
    The connection should look like this

    Why would i do this? this brings us to the next question
  2. If its possible, is it better to record with that cycle connection or to record with obs/xsplit directly without capture card. Since some capture card does encoding on their own, would that lessen the PC burden as PC doesn't have to do the encoding?

    So here is my real question
  3. Can i use hdmi switcher as a bridge between my input devices (e.g Game Consoles and PC) and the capture card like this? (Ignore the red one if #1 question is not possible)