I use shavings indoors -- some brands (or individual lots) are dustier than others so if you have the ability to shop around for a better brand it would be worth trying, although that depends on what your local feedstores carry. I don't think much of my coop dust is from the shavings as they are not particularly dusty when I use them in my horse barn. But it will for sure depend on the brand and may also depend on one's definition of "dusty" (remember that an awful lot of the dust there is created by the chickens themselves)
If I had a straw chopper then I would certainly consider tryng chopped straw, but whole straw is too annoying to work with for my tastes (it does not turn or clean well, and I use a version of deep litter management so both those things are important to me). I have not tried shredded paper in the coop because I have loathed it too much in past years in horse stalls; but some BYCers use it and like it, so <shrug>.
Personally I like shavings best for the nestbox, as they are easier for me to spot-clean (just pick out a single lump o' poo) than other materials. I have a tall enough lip on my boxes (probably 6" plus) that I don't have much trouble with them getting kicked out; tho perhaps I just have very unambitious hens too, I dunno.
Most of my nestboxes are not darkened at all, they are really quite open and airy, and I have had zero problems that way. I also use a couple upended totes with a hole cut in, laid on the floor, which are obviously quite dark inside, and they work fine too. I do not know as it is something to stress over unless you are having problems with floor eggs that cannot easily be corrected by training.
JMHO, good luck, have fun,
Pat