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Both would be well suited on the basis of what you have told us. The top Sportage is more expensive than the top XV, but it’s more economical, the service intervals are a little longer, and it comes with a 7-year warranty compared to the XV’s 3-year deal. If you planned to keep the car for a number of years I would suggest the Sportage is the better choice, but if you turn your cars over regularly I would probably go for the XV.
In going order it’s worth $7000-$9000 depending on condition, so you have to consider if it’s worth spending $5000 on it to get it back on the road. It’s eight years old, has done 180,000 km, it’s probably best to sell it to a wrecker if you can get $2000 for it.
Use a 5W-30 from any of the premium brands.
That’s the problem with VWs, you can get six good ones in a row, but the next one could be a lemon. Rather than a wagon you’re probably looking at an SUV. I would suggest a Kia Sorento, Subaru Outback, or Toyota RAV4.
I would use the factory recommended oil, at least while the car is under warranty. Once the warranty has expired you could use the Mobil oil and shouldn’t experience any problems.