Q1: I have read numerous articles, and each adopts a different processing method. Therefore, I wonder if there is a “correct” one (though I’m aware there may be no absolute “correct” method in EEG analysis). If not, perhaps there is a formal or logically consistent processing workflow that most researchers consider reasonable?
Q2: I have another question: I’m unsure whether to perform bad channel interpolation before or after ICA.
The closest thing to a “correct” procedure would be the efforts of the MNE-BIDS-pipeline: MNE-BIDS-Pipeline
Interpolate bad channels after ICA. The interpolation makes the reconstructed channel perfectly correlated with the surrounding channels which hurts ICA fitting.
Regarding ICA with reduced rank: MNE-Python should detect the reduced rank automatically in most (but not all) cases and do the right thing with the default parameters.