Sinking or sourcing refers to the type or configuration of the transistors used for the low voltage DC inputs.
Sinking = NPN transistor = “switching the negative”.
Sourcing = PNP Transistor = “switching the positive”.
Some VFD’s have configurable input types with a jumper or small switch, allowing you to select which type works better for your application.
Most “North American” or European drive brands default to sourcing.
A lot of Japanese brands default to sinking.
Most full featured VFDs have restarting after a power outage as a selectable option. So certainly be careful with that one. A live test shouldn’t harm anything. A contactor on the line side is a way to ensure it does not restart, but word of warning, the contactor should not be used to start and stop the drive under normal circumstances. It can be used as an E-stop or a power outage safety mechanism. If used as an Estop mechanism most drives also have options for configuring this as well.
The low voltage inputs should be used to start, stop, and control the operation of the drive under normal circumstances.
Hopefully this helps you out.
@Susquatch that should answer everything?