I'm reading this paper, and I need some help with clarifying what exactly is the difference between cycle and circuit:
A cycle in an undirected graph is a subgraph in which every vertex has even degree. A cycle is a circuit if it is connected and every one of its vertices has degree two.
The subgraph of a graph $G = (V,E)$, by their definition, is $G' = (V',E')$ where $V' \subseteq V$ and $E' \subseteq E$.
Question 1: Does degree in this statement mean the degree in $G$ or the subgraph $G'$? Neither really makes sense, for example with the following:

In the first example, (2)-(3)-(4) is clearly a cycle (at least as taught in any intro CS course). If we take it as a subgraph, then all of its vertices have even degrees in the subgraph, so it seems that the "even degree" definition applies to the subgraph $G'$. However, in the second example, (2)-(3)-(4)-(5) wouldn't be a cycle by this definition, since (2) and (4) have degree 3 in the subgraph marked in red, but this feels very weird to me. Similarly, if the "even degree" definition applies to the original $G$, then the first example wouldn't be a cycle since both (2) and (4) have degree 3.
Question 2: By this definition, $circuits \subset cycles$. Intuitively, is circuit the "simplest" cycle (only one "loop" in the subgraph $G'$)?
To further confuse myself, I saw this post,
Circuit : Vertices may repeat. Edges cannot repeat (Closed)
Cycle : Vertices cannot repeat. Edges cannot repeat (Closed)
Question 3: Now, $cycles \supset circuits$?
Any help clarifying this would be appreciated.