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5) Also, how long it will run and what'll happen if multiple people submit files at the same time. Using task queue is what's commonly done to address that. For example RQ - python task queue backed by Redis. By using it you can store task ID somewhere and give user a link with promise "It'll be done soon, wait for it". You may have seen some sort of this technique in the internet.
I agree with what you're saying with one small change. I've noticed and at least from my perspective that FastAPI is better than Flask. It's more beginner-friendly and can intergrate with pytest much easier than Flask. Flask is by all counts a great framework but I would recommend FastAPI over it.