(1) The damage dealt is 100% so you basically pay the same amount for the repair as if you'd construct it anew. (I'm not sure if this is really the case - maybe it is "only" the price you get for destroying the building. But even that would be 5000 Mnai for a level 5 MIC.) There are 9 or 10 provinces which can have a polybian MIC. And the AI tends to have them upgraded to level 5 by the time the Marian Reforms happen ....
(2) Yes, the AI seems to do it every turn (if it has enough money, that is), as far as I can tell it even neglects new constructions (at least a few process_cq tests back in vanilla EB seemed to hint for that, since there never was a building in the queue).
I also assume that this huge expense is part of the reason for the mass recruitment of Vigiles instead of legionaires (although the stat/cost ratio has a major influence too of course).
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