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I would recommend familiarizing yourself as best you can with a game engine and work on building a playable level in the engine. Ideally something polished enough to put on a portfolio. Alternatively, game mods are another approach you could take to build out your portfolio.
Yes, pick an engine and learn it as best you can. Refer to the job postings of the company to see which engine they ask their candidates to have experience with.
Yes, as a designer/level designer you need to know to code a little bit to demonstrate the game mechanics.
You can go through either Unity or Unreal free courses.