I am not sure how much of the smoke is from 2)b), because I'm assuming the surface materials are designed to minimize friction and therefore surface burning.
[1] https://www.quora.com/When-a-railgun-is-fired-where-does-the...
Steam/water vapor/humidity is gas phase H2O and is transparent. Water droplets in air is often referred to as 'steam' or 'wet steam' but is liquid phase H2O suspended in air. If it mattered in context I assume it would be clearly stated as gas rather than liquid mist.
I doubt anyone would call the component of air that is 'humidity' by the word 'steam' but it seems it would be correct [1]. I am used to the term 'water vapor' for that gas phase H2O though.
This leads to one of the big problems with railguns, which is that you have to replace the rails frequently due to wear and tear.
The rails still wear down.
As a side effect (as in most electrical shorts), both the rails and some of the projectile are vaporized when the gun is fired due to both friction and electric arcing; and that's the smoke and fire you see.
This wear (which is signifcant per shot) is also the main obstacle to actually using railguns in any significant capacity in warfare (the other being the need for a massive current source, but nuclear generators and massive capacitor banks help).
Coilguns, on the other hand, don't actually touch the projectile they fire, and as such have a significantly cleaner output.
In a nutshell, you need to deal with most of the rail gun hard problems and then also deal with the added coil gun problems.
When you compress a gas it creates heat. The projectile is moving so fast it super heats the air infront of it as it compresses it.
Also normally things that go the speed of this projectile (mach 6 I believe) are way up in the sky where the air is less dense. So theres a whole lot of air down here for it to shove out of its way.
The explosion is from the rapid expansion of the superheated gas after leaving the barrel.
another possibility for the "smoke": powerful railguns often use a pressurized gas to start the process of firing. if the projectile were stationary at the time that current was applied, it might be spot welded in place.