https://en.wikipedia.org/wiki/List_of_United_States_federal_...
As they get closer to release or if their sentences are short enough, prisoners can even get work release which allows them to leave the prison during the day to work at a regular job. (I think the GP is confusing work release and parole - the Federal system does have work release)
The majority of prisoners are in prison because of a plea deal, not a jury verdict, so they often have to snitch on their accomplices as part of the plea deal (with severe consequences for lying and omissions). In practice the traditional prisoner’s dilemma usually plays out with everyone snitching on each other and everyone getting a deal because the prosecutor doesn’t want to waste time and money on a trial.
This seems unlikely. Any prosecutor running for re-election wants to score. At least one big fish.
"Minimum security institutions, also known as Federal Prison Camps (FPCs), have dormitory housing, a relatively low staff-to-inmate ratio, and limited or no perimeter fencing. These institutions are work- and program-oriented."