Yes, your Lava Dome is a 1996 model.
The quick rule of thumb here with identifying the catalogue year is the style of font on the Decals, and the colour of the paint - although there are variants on the paint! Obviously the tubing used, and Cable Stop arrangement developed through the years, but it's a quick method of identifying the year of any Kona.
Each of the catalogues can be found on this site, so please do view them for reference:
https://www.retrobike.co.uk/gallery2/v/Manufacturer+Archive/Kona/Catalogues/
I must say that you seem you have a lovely collection of mid range 90's Kona bikes, but I wouldn't be concerned about paint chipping or clear top coat. By all means apply a little touch up paint here and there with modelling paint, but just accept that these are 25 year old bikes - some do shed their paint more readily than others though. The 1998 Kilauea being a fine example of this!
With regards to your newly revealed 1997 Cinder Cone, my understanding is that the Indy C was a poor fork, and flexed a huge amount. The Indy XC would probably be a better choice, but someone will know more than I do on this. You're correct that the 1997 Cinder Cone did not originally come fitted with a Project 2 fork, although that would make for a great ride, unless original catalogue build is important to you?
If I may, I am going to bow out here now with regards to build advice, as there are other circumstances regarding my contribution to this site that you may not be aware of. I can certainly give advice on the year and hierarchy of any Kona model, although I have never built a period correct bike, but merely fitted the best components that suit me.
Pip