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I'm sorry but I can't give any information from this image. I would suggest speaking with your County Extension Office.
https://www.gardeningknowhow.com/extension-search
There are usually not many disease problems found with this species. You may see episodes of pine needle cast, which is a fungal disease that causes the needles to turn brownish-red and fall off. This is usually a symptom of other problems like bark beetles, so check the tree for other pests and diseases.

https://www.gardeningknowhow.com/plant-problems/pests/insects/bark-beetles-on-trees.htm

Yes you can do that. In the photo tree, there is a lower area just above the soil grade with dense foliage, and then a space in the middle with patch of dead needles. Don't strip it up any higher than the whorl of branches just above the dead needles.

Usually, they will only tolerate slightly alkaline soils. Too alkaline, and you can expect to see the symptoms that you are experiencing now. I would add a little iron sulfate to the area around the tree. That should help it out. Follow all instructions on the package for the best results.

This article will offer more information on the care of this tree: https://www.gardeningknowhow.com/ornamental/trees/pine/italian-stone-pine-information.htm

It will, definitely, need to be an indoor specimen in your area. They are not hardy near that cold of a region. This will come with its problems, but can be done if you know what to expect.

Keeping trees that can reach 80 feet tall in container is not an easy task after about 5 years or so, but you can make this much easier for yourself before then.

After the first year, pull it out of container, and trim off any thick roots (about a finger thickness or around that) Do this every year for the first 2 or 3 years. Make sure that your tools are sterile for this! Replant with fresh, slightly acidic soil.

Do not do any top pruning if you'd like to preserve its single trunk shape.

After a few years of this, it will become unnecessary for yearly pruning. Just let it grow until it outgrows your container. Then you can trim large roots again.

This is the loose basis of forming a Bonsai. It is the best way to keep large trees in container permanently.

Here are some articles that will help:

https://www.gardeningknowhow.com/ornamental/trees/pine/italian-stone-pine-information.htm

https://www.gardeningknowhow.com/category/houseplants/bonsai

They are hardy to zone 8, which you are, but cold air or wind will cause needles to turn brown. Also, since you had it indoors, which they don't tolerate for long, pull it up slighty and check its roots for rot. If they are brown instead of light tan, rinse the roots in water and clip off dark roots; then repot.

With proper care, the needles should green up. It needs well draining soil in full sun. See the articles below for more care:

https://www.gardeningknowhow.com/ornamental/trees/pine/italian-stone-pine-information.htm

http://hort.ufl.edu/database/documents/pdf/tree_fact_sheets/pinpina.pdf