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1. Callback internships are essentially second chances for an additional period or month, so the team could assess your work. Many firms explicitly call them assessment internships, which are literally assessing you for the job position. Others may just consider it an additional extension of sorts. If you are in a team that actively hires freshers and you are currently in the 4th/ 5th year, it might mean you have a chance at the offer.
2. Offers are contingent on the team partner's feedback. Could be the equity partner, mostly. They wouldn't make an offer if they aren't hiring obviously. However, some partners may provide good feedback if your work was really exemplary and you may be absorbed in another team. However, I do not think another team would make an offer without actually assessing you. Maybe you have a chance at the placements then with the feedback. Finally, if your feedback itself isn't the best, none of this would work out..
3. GC and M&A are the same team in most firms. You have to understand hiring at law firms is very partner run, they are willing to cross procedures if the partner has a strong leaning on someone. Please speak to the partner in your team (the senior most in case of multiple partners, something common in GC). If they have your back, you have nothing to fear.
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