Look at the diagram:
This diagram is drawn from the perspective of A's frame, with A at rest at the origin of this frame...the horizontal axis is x and the vertical axis is t, so you can say that A's position on the horizontal axis is x=0, and the light is first emitted from this position at t=0. B is at the origin of his own frame, at x'=0, and the tip of the light cone where the light was first emitted is also t'=0. You can see that for A, the light sphere at the moment of the event E on the left also contains the event E1 on the right, and that A is exactly midway between E and E1 at the moment these events occur. You can also see that for B, the light sphere at the moment of the event E on the left contains the event E2 on the right, and that B is exactly midway between E and E2 at the moment these events occur (according to his own definition of simultaneity). You can look at the graph to find the coordinates of all these events if you want to check the math--for example, in the A frame E occurs at (x=-2, t=2) and E2 occurs at (x=6, t=6), while the event on B's worldline that is simultaneous with these events in his own frame occurs at (x=2, t=4). If you apply the Lorentz transformation to all three of these events (using v=0.5c), you find that in B's frame they all happen at the same t' coordinate, and that the event on B's worldline occurs at x'=0 while E and E2 happen at equal distances from B on either side.
It does apply. Because of the relativity of simultaneity, if the clock at the left end of the rod reads 0 at t'=0 in the rod's rest frame, in frame O it does
not read 0 at t=0, instead it already reads rv/c^2 at t=0. So, if in frame O the clock ticks forward by t/gamma = r/(gamma^2*(c+v)) in the time it takes the light to reach it,
as predicted by the time dilation equation, then the time it will show when the light reaches it will be rv/c^2 + r/(gamma^2*(c+v)) = rv/c^2 + r*(1 - v^2/c^2)/(c+v) = [rv*(c+v)]/[c^2*(c+v)] + [rc^2*(1 - v^2/c^2)]/[c^2*(c+v)] = [rvc + rv^2 + rc^2 - rv^2]/[c^2*(c+v)] = [rc*(c+v)]/[c^2*(c+v)] = r/c.