Hey Tom,
I was waiting for someone local to you to answer your questions but here goes.
Those cypress logs bought in N. Fl. and S. Ga. where I roam are seldom scaled but the whole log is scaled when they do it. Most cypress is weighed and purchased by the ton around here. I think it is because most of it is sold to the Mulch mills. Saw logs are "culled" and sawed, the rest is ground up. When logs are scarce, everything is ground up.

Defect in cypress basically is "ring shake". These logs are shook naturally by the wind or are handled roughly by loggers.
You will find it to be quite common.
Logs that have been on the yard for 3 weeks or better will be difficult to saw because the sap wood dries out and becomes difficult to cut. Blades don't last long cutting it either. I would consider logs with dry sapwood as having a defect from the sawyers point of view.
Heart rot in the stump is common and will generate a void that runs 3 to 10-feet up the tree.
Woodpecker holes are common and are the size of your fist or bigger and can go to the center of the tree. These holes ruin the cut unless you have a customer that is interested in rustic material and you can sell them as such.
Peck is a defect if you are cutting siding or fence boards but if separated and sold as Pecky Cypress it will demand a higher price than the clear to most markets.