1) I would say NO, at least NOT the device you mentioned above because IrDA/USB Bridge purpose is 2-way data transfers between IrDA devices (mostly in past) and AFAIK in general it's a quite different protocol than any of IR remote control protocols. Maybe some IrDA devices can be also used as IR RC receiver but I don't have any experience with this and it may vary. See Infrared Data Association - Wikipedia versus Remote control - Wikipedia
2) On RPi 4B it's not a big difference between Raspberry_Pi_OS and LibreELEC (with the same or similar kernel release) regarding to IR remote control configuration, you just need to use the proper config files / config files paths in LibreELEC as some default files are in read-only filesystem and you need to put the files (that you need to edit) to override paths as described in wiki here: Infra-Red Remotes - LibreELEC.wiki
Everything is working fine on RPi 4B / LE 9.2.6 so just read carefully and follow the instructions.
The simple IR sensor can be used on RPi through GPIO pins.
The /flash/config.txt update you have done should be OK, although I would put a pin number there:
dtoverlay=gpio-ir,gpio_pin=18
You may change the GPIO pin, GPIO18 is a default when not specified.
Connect the IR sensor's data pin to GPIO18,, Vcc to 3,3V, GND to GND, reboot the RPi and use ir-keytable to configure / map keys in accordance to wiki examples. That's all.
Also don't forget to update the RPi's bootloader to some of recent versions (at least directly from LE 9.2.6).
In case you still won't get a reply from ir-keytable similar to example below, your LE installation is probably screwed up somehow and consider to start with a fresh LE 9.2.6 installation:
Found /sys/class/rc/rc0/ with:
Name: gpio_ir_recv
Driver: gpio_ir_recv
Default keymap: rc-rc6-mce
Input device: /dev/input/event1
LIRC device: /dev/lirc1
Attached BPF protocols:
Supported kernel protocols: lirc rc-5 rc-5-sz jvc sony nec sanyo mce_kbd rc-6 sharp xmp imon rc-mm
Enabled kernel protocols: lirc nec
bus: 25, vendor/product: 0001:0001, version: 0x0100
Repeat delay = 500 ms, repeat period = 125 ms