The junta will definitely not be fine. They are on the verge of losing the capital city as we speak. China has been supporting both sides of the conflict and it's very possible we see Myanmar break off into separate states.
Huh? They are not even close to losing the capital city. I am not sure where you got that info.
The Chinese backed groups are the only ones who have substantial forces and equipment to attack the Junta. Once the Chinese asked them to cease fire, the junta will turn their focus on other weaker groups.
The Chinese has not met the exiled government who were created with most elected by people in any meaningful manner. Yeah, they support both sides, my ass.
There is little interest for Xi to change the political situation as long as he gets what he wants from the Junta. Burmese people mostly do not have good impressions with the Chinese deals that were agreed with the previous Junta and civilian governments had to stopped most of those projects. Now the Chinese wants to continue them and dictators are better at that because they don't have to listen to the public opinions.