To my knowledge, I don't see a difference in dropping the course now or on May 31st, because a dropped course is a "dropped course". The plus side of dropping the course now is that you will get some of your money back.
In terms of it affecting your admission to a level 2 program, is the course a mandatory pre-req (i.e. required for your degree)?
For your last question, I would suggest e-mailing the department or contacting someone. But in general, having a cancelled course is not that detrimental as long as there is not an overall trend.
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