That was normal behavior when I had AIS, nothing to worry over.
As to question 1, yes, because you reset the modem, it is being recognized as a new network.
As for question 2, These 3 options represent how communication will be allowed to and from your PC, Home being the loosest, Public being the strictest. I always left mine on Work/Medium, even at home, just as an extra precaution, but you should not need the Public setting unless you are on something like a public WiFi hotspot.
Do you (or anyone else) know what happens if I choose, “Public?” Say some program (or whatever else) tries to connect to my computer, will Avast give me a heads up to either accept or decline the connection? Or will it simply choose not to accept it? I’d like something like that: an option that checks with me first before connecting? Would “Home” be more suitable or “Public?”
I don’t remember the exact specifics, as I have not had AIS for ~6 months, but if I remember correctly, it was more or less summed up in the help file.
But provided my memory serves correct…Work follows the application rules you have set up for each individual program, while choosing Home or Public will override them.
Home allows unrestricted communication on whatever LAN you are using (which is why you should never use that setting in a public network)
Public should be a blanket disallow policy, stops all incoming connections.