Yes, and the scare actors do not come out until
HHN starts, a hour later after the park closes to day guests. Agree, anything big has a tarp over, and most of the props are pushed off to the side. The few that are not covered do not appear scary, and just look like typical Halloween decor. I wouldn't worry about kids seeing or hearing scary stuff. Be prepared though, the large crowds into the Studios start around 3 or so, as those with a special ticket, can enter before 5, and stay in the park to wait for HHN to start. Same, that there's a smaller crowd that goes to Islands, as it will close around 7 or 8pm. Expect to see CityWalk a mass of people, most heading to the Studios as 5 o'clock arrives. I love that time of year. Nice to eat dinner at CityWalk and take in a movie or mini golf game. Plus, warm enough, the pools are nice too at night. Usually, the hotels have movie by the pool, that can also be fun with kids.
Oh, and if you have park to park, ride the Potter train from the Studios to Islands. Again, I'd do it earlier than close to 5, as the crowds will have that same idea. I do it around 3:30 or 4, and then take my time going to the exit of Islands.
Have a great trip.