Morphling says:
... That's also the last circle interaction I needed for an advance ...
Nice, they tend to come faster at the start, when there are so many new Faces to Put Names to.
Morphling says:
... although leading a wolf pack sounds fun and I'm absolutely going to do it ...
You can start working on that in the fiction, finding people to turn and such, then you can solidify your control, out from the fiction into the mechanics with this Advance, if you take the Advance before it is supported in the fiction then we need to quickly work with the fiction to make it true, either direction works. You can even gain a wolfpack without taking the Advance, if you do it in the fiction then we add it to your sheet, but I still recommend taking the Advance else you can just as easily lose it through fiction (that which your sheets gives you is less likely to be taken away).
Morphling says:
... for now I want to take Alpha Wolf since there's already been a few situations ...
Agreed, I noticed that deficiency too. :)
Bear in mind that you still need to use Persuade with Heart in situations where you are not threatening people or making 'alpha' appropriate promises, but this can make your low Heart mostly irrelevant since that is not how your character operates.
Morphling says:
... what is the difference between status +1 and obtaining circle status 2? ...
There are two aspects to that:
'obtain Circle Status-2' is only available after you have taken five Advances already. But, since PbP is slow, consider that a 'recommendation', and we can take those whenever they make sense in the fiction, though still 'later'.
As the Advance says: '+1 Status (max+1)', so these can not bring you to more than a +1 Status in that Circle (same way the normal Stat upgrades can not bring you above +3 in a Stat). If you want to get higher Status you have to work for it, either in the fiction or via the Advance. If you ever want to get Status-3 you will have to do that in the fiction, there is no mechanical way to get there, Status-3 is all about the role play.
Since you are already Status-1 in your own Circle, this is about your Status in another Circle. And, by the rules, you can never have Status-2 in a Circle other than your own.
Status is not about your Rating, or course, Status is about how important you are in that Circle, Rating is about how much you understand (and can work with) that Circle.
Remember that your Circle Ratings can move and change over time. By the rules you can change them at the End of Session, but PbP does not gel well with 'sessions' so we are doing the End of Session Move all the time, whenever it makes sense. (Urban Shadows 2's End of Session is mainly bookkeeping anyway).
Does that help?