Those are called clerestory windows. The bump itself is a bit like a mansard loft, but only partly. A half-mansard loft?
The changes are better I think, although there doesn't seem to be lot of cast down light in your images. I suspect a better renderer would give a more realistic amount of light. I used Blender with realistic light levels to figure out light cast by skylights and light wells in my design.
Here's an example: https://drive.google.com/file/d/1-MKPhsJOrvCN...1sHSTIw5/view?usp=sharing
That was not actually designed in SH3D, but the point is that all the lighting you see is just from a very bright external sky texture. There are no other lights in the room, it is all coming in through the windows and bouncing around just like the real world.
As for the cat house... People are strange, and people with pets more so
