There are no "stock" avatars to choose from anymore. Just use anything you have, or pull something from the Internet. And yes, you should be able to do it from phone; might be more of a challenge if you don't already have a picture, though.
I've read that when you get to 10 posts (therefore granting you more options) it's not immediate. Not sure how long, but it apparently take a while for the "big brain" to figure out that you're good to go.
Be aware, whatever you're hoping to accomplish by reaching 10 posts, it's not immediate that the "big brain" will recognize that you've reached that plateau.
I've read that when you get to 10 posts (therefore granting you more options) it's not immediate. Not sure how long, but it apparently take a while for the "big brain" to figure out that you're good to go.
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