No, it doesn't stop eggs from hatching to my knowledge... But I'm not positive on that. I'm in southern ca, so very different climate than you. I have no idea about bugs but i think they are fairly common. I clean my coop once a week. I could go longer, but I don't. My coop is small and they ( 4 hens, 1 roo & 2 5 wk old chicks) free range, so I only have to scoop out the shavings under the roost bar. I stir the rest , add more DE and more shavings to replace what I removed. My birds dust bathe in the dirt. I don't provide anything special besides if we have a fire pit on the weekend, then I may empty the ashes into their preferred distinguished area and stir it in. They seem to like that.