Hi Doug,
Yes, the "wet and dry" aspect can be confusing for a novice. Even many "experts" I met have very narrow and/or limited understanding of these methods. Much of "folk" and vernacular systems of building (and understanding natural materials) has either been lost, or misrepresented in text.
I have seen many modern Kubbhus, like my friend Roy that I have corresponded with over the years that are built more on "theory and experimentation" than actual historical knowledge and research. I have "debated" this topic with a few "cordwood building experts" that had only a limited understanding of the method as they new it from examples in Canada and the "New World" but had no experience with the foundational elements from Eastern Europe, the Middle East and Southern Asia.
If of an unstable species of wood and very "green" (i.e. wet) you can get an over amount of checking and movement, though this isn't insurmountable if a more traditional method of application is employed. If to "dry" a wall can actually push itself over and or a frame apart.
In your planning process to build small than larger, I would suggest that the smaller one if possible becomes an augmentation of the larger. Often on DIY projects this lack of "forward" planning can either cause a waste of materials and/or a loss of optimal use.
Spruce isn't the best species, but far from the most challenging as well. It is totally fine if not leaving expose and plastering over or covering in some way, on the outside. I also tend not to recommend the "round" method unless well versed in the modality of building and going with an extra thick wall.
If I use them before the 6-12 month( maybe longer?) recommended drying period, am I facing any other issues other than having to reapplying cobb? Especially since I am only looking to have this be a primary residence for under 5 years.
Well now we really get into the "expert debating points" on this subject. Again, each species is going to react differently, and the method of application is also a major contributing factor. One year or ten doesn't really equate into the method I would recommend...for the most part. I just do not recommend to novice (nor do I myself) go with "single course" thickness walls. I would strongly recommend a minimum of 300 mm. I also would not, unless an historical restoration project, ever build with this method minus a timber frame. Since you are using a timber frame, I feel you are very much on the correct path. So....
Since you are using a timber frame, I personally do not believe you need to age the wood much beyond even 3 months...if at all. I am writing this with the caveat that I very well may have an image of design and context application outside what you intend. Seeing a "sketchup" model of your plan can give me more insight into being of further assistance.
Regards,
j