Not directly applicable to your situation, but some general experiences.
ATIP requests have always been a bit mysterious, I've never been completely clear on why they push you that way rather than the 'old' way which I assume was under the Privacy Act. I've not heard of any significant difference between them other than that ATIP requires a response within a specific period. I've not seen any indication this has any effect on the ultimate result, there have still been long delays in getting a file. The automated 'got your request' response may be sufficient to meet the specified timeline. Once you've made the ATIP request, there is nothing more to do, it's in the queue. I would not expect any additional fees.
I stopped using or recommending direct LAC requests some years ago, especially when their backlog got to beyond 2.5 years, as it was as of early 2023. I've been using an Ottawa researcher who was typically able to turn around a file in a few weeks. He's Arnie Kay and has been recommended on here in the past. In the last 6 months, there are rumours LAC has hired up to clear the backlog, though details on current timelines are sparse. The last researcher I sent Arnie's way waited several months, I'm not clear if that's a change in how LAC responds to his requests or if he is just busy with other projects.
I have in the past received files for men with wartime service and who stayed in into the 60s. It all came with the same request. There didn't seem to be any differentiation re: redactions between war/post-war records beyond the standard 20 year rule. Deceased > 20 years means little to no redaction.
I've not done a file with a break in service as yours, you might want to make clear you want both and what details you know. I don't know if those are two seperate files to them or one 'linked' file as with continuous service. Service numbers are helpful but not strictly required. They can generally find the right file with just name/hometown/next of kin etc.
I almost always suggest requesting the complete file. The default response is what they refer to as the genealogical package and is a subset of documents with the key info most researchers are concerned with (attestation/units/dates/courses/promotions). The complete file may get you a lot of junk on dental records, pension info and the like, but you will occasionally get lucky with something that shows what Coy he was in or things like that.
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