Ah. I have local control disabled on mine. I'd assume a hold down should not cause a subsequent tap up to turn (on and then) off the relay, so I'm not sure what's going on. You might try posting on the Inovelli Community forums to see if anyone has had a similar experience.
As for buttons, that's normal: the Alexa API does not provide a way to expose buttons. It can expose switches, but only to control them. They can't be used as "triggers" in an Alexa routine. For that, you'll need an awkward workaround like a virtual motion or contact sensor (all Amazon lets you use at the moment). I hinted at these workarounds in another thread (Alexa Skill does not support SmartThings button), and perhaps a search will reveal more if you can't figure it out based on the general description others have provided so far (but I'd also be happy to help).