Doesn’t look like a caterpillar to me. It has well-defined legs (not prolegs which larvae are known to have) and looks a lot like a plant hopper of some kind to me. I am not an expert, and I can’t conclusively say if those hairs are irritants.

No. The legs and weird wings are a tell-tale sign it's not a larva.

I didn’t know caterpillars could be so compact! 😍