annamal said:
Does the work energy theorem: delta W = delta KE apply with external and nonconservative forces as well or does that formula only work if there are only conservative forces and external forces = 0?
It works with non-conservative forces as well. The general form of the W-E theorem is
$$\Delta K = W_{Net}$$ where ## W_{Net}=\sum_i\int\mathbf{F}_i\cdot d\mathbf{s}## is the sum of all the forces, conservative and non-conservative. Textbooks often split ##W_{Net}## in two parts, one that includes the work ##W_C## done on the object by all the conservative forces and one that includes the work ##W_{NC}## done by all the non-conservative forces. Then the W-E theorem becomes, $$\Delta K = W_{C}+W_{NC}.$$ The work done by the conservative forces can then appear (with a sign change) on the other side of the equation as the change in potential energy $$\Delta K +\Delta U= W_{NC}.$$It seems to me that you are using the term "external force" incorrectly. As the name implies, external forces are outside the system and cross the system boundary to do work on it. You cannot say that a force is external if you have not defined the system and its boundaries.
For example, you drop a book of mass ##m## on the floor from height ##h##. If you choose the book only as your system, the force of gravity ##mg## is external to the book because it exerted by the Earth and that is not part of the system. The force of gravity does work ##W= mgh## and the W-E theorem says $$\Delta K = mgh.$$ Note that a single-component system does not have potential energy. Potential energy requires at least two components and depends on the relative configuration of these, i.e. their relative position in space.
If you choose the Earth and the book as your system, there are no external forces acting on the system to do external work. (We ignore the gravitational attraction of the Moon, the Sun, Jupiter, etc.) Therefore, $$W_{Net} = 0$$ However, the potential energy of the system changes because the book moves closer to the center of the Earth. What is work done by gravity in the one-component system is change in potential energy on the other side of the equation in the two-component system $$0=\Delta K +\Delta U=\Delta K - mgh.$$Whatever system you use, the W-E theorem gives the same result.