When creating an issue , for Project and Issue type can I call it/change it to something else instead and can we add more fields between them ?
No. The project and issue type are structural - they determine what fields appear below. It would not make sense to have any other fields in there, because they wouldn't have that effect.
On the words used, yes, you can if you translate the system to another language, or edit the language pack currently in use.
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