Yes, they are paying software creators to add a chrome install in the installer, usually with a checkbox that's enabled by default. I remember the creator of VLC saying that refusing Google's offer was the hardest decision he's taken, so the money offered must be good.

Yes, it is. It’s how Google managed to get so much marketshare so quickly.

The VLC lead dev (Jean-Baptiste Kaempf) said they offered him over 30 million EUR for secretly shipping Chrome with the VLC installer/updater.

Many other projects, from Piriform’s CCleaner to adware also ship Chrome for the same reasons.