itch.io

Yes, it's absolutely fine to approach the prompt like this. There are many ways to tell queer narratives, and there is no reason to exclude allegory.

We appreciate your offer, however we are not looking to increase the prize pool or take on partnerships at this time. Thank you for your interest, we look forward to seeing what you create for the jam! 

Since this is a jam about experimenting and pushing boundaries, the answer is yes. I'd expect that your piece shows some engagement with the visual novels as a format and some form of reading element (for instance, one could argue that an opera with subtitles is a visual novel set to auto), but you're pretty much free to do as you please. 

Also, learning a visual novel system like renpy is pretty easy! I do encourage you to play around with it, it's not as intimidating as it might seem. Here's a post (and tutorial) that might inspire you a bit if you choose this route.