According to the Check Point website, you can use the pre_upgrade_verifier tool to verify if your management server is ready to upgrade to R81.20. This tool checks the compatibility of your current configuration and database with the target version, and provides a detailed report of any issues or warnings. The other tools are either used for exporting or importing databases, or not valid tools. Reference: Upgrade Verification Service

Proxy ARP is a technique that allows a device to respond to ARP requests on behalf of another IP address. Proxy ARP is required for Manual Static NAT when the translated IP address does not belong to one of the firewall's interfaces. This is because the firewall needs to intercept the packets destined to the translated IP address and forward them to the original IP address after applying the NAT rule. Without Proxy ARP, the packets would not reach the firewall and the NAT would not work. Proxy ARP is not required for Automatic Static NAT or Automatic Hide NAT, because these types of NAT use IP addresses that belong to the firewall's interfaces. Proxy ARP is also not required for Manual Hide NAT, because this type of NAT does not change the destination IP address of the packets, only the source IP address. Reference: Check Point R81 Security Management Administration Guide, page 115

Explanation
SmartEvent does not use matching a log against local exclusions to identify events. Local exclusions are filters that are applied to logs before they are sent to the SmartEvent server. They are used to reduce the amount of logs that are forwarded by the Security Gateways or Log Servers, and to avoid sending irrelevant or sensitive logs. Local exclusions do not affect the event detection process, which is performed by the SmartEvent Correlation Unit on the SmartEvent server. References: Check Point Security Expert R81 Course, SmartEvent Administration Guide, SK120193 - How to configure Local Log Filtering on Security Gateway / Cluster / VSX