The question was never wether fan-edits were legal. They are not. So any way of distributing fan-edits, no matter if paid or for free, is technically a copyright infringement.
Technicality–making a fan edit is legal, distributing it without a license from the copyright holder is not.
Sadly, not if the blu-ray is used as a source. By removing the copy protection you have breached the DMCA.
I learned that recently making my TLJ fan edit. I think that’s complete trash. If I’ve purchased the official blu-ray, I should be able to do whatever I want with it as long as it’s for private use.
I know it’s not really an issue since it’s impossible to enforce, but I take exception on principle.