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This may have been caused by a disease called flower blight. Here is more information on it:
http://www.ipm.ucdavis.edu/PMG/GARDEN/PLANTS/DISEASES/campfbli.html

It sounds like the plant has rust fungus. This article will help: https://www.gardeningknowhow.com/plant-problems/disease/learn-about-plant-rust-disease-and-rust-treatment.htm

These articles will help you:
https://www.gardeningknowhow.com/ornamental/flowers/gardenia/when-to-prune-a-gardenia.htm
https://www.gardeningknowhow.com/ornamental/shrubs/butterfly-bush/butterfly-bush-pruning-how-to-prune-a-butterfly-bush.htm

Hello. Camellias are not a grafted plant. Grafting involves 2 species merged together: one's roots to another's top to help the plant live longer and/or support special fruit, as in most fruit trees, pecans, etc.
The best success for layering would be to find a branch (or many) long enough to lay down on the ground, cover with a few shovels of soil allowing for at least 6 inches of top growth sticking out of your new mound. Then, months later, (or even better a YEAR) cut your new baby away from the mother (close to the mother to allow for possible 2 plants from each rooting).
Camellias produce a surprising number of seeds.

I would definitely keep it indoors. Provide it with as much light and humidity as you can to keep it blooming. If you place it outside in cold weather, it will die and while it may be a bit warmer now, there will most likely be more cold weather coming.

They may have thrips. These pests will cause the blossoms to fall off before they open. Here is more information on them:
https://www.gardeningknowhow.com/plant-problems/pests/insects/controlling-thrips.htm