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Leaking toilet....again

Toilet is leaking by the flange again, time to deal with the pipe that is too long for the tile that is on the floor. I need a few things answered.
1st) Should the flange end at either floor level or slightly above floor level correct?
**if memory serves me right mine is more than a 1/4” but less than 1/2” I remember it being about the width of my finger the wide width off the floor**
2nd) The whole thing is cast iron, I am not sure if there is lead in the flange. What type tool should I use to cut the pipe? Would a grinder work properly?
**I want to expand my Ryobi cordless tool collection**
3rd) I assume I should use one of those PVC new flange things with a compression gasket are there any concerns connecting PVC to cast iron?
3.1) I am assuming a PVC flange replacement can rest on the tile or am I wrong and should cut out the tile around the flange?

before anyone asks, I have extensively shimmed the toilet three times and same result good for a year or two then the seal fails.
I have used one and two wax rings, neither appears to make a difference
The current flange is very corroded even the repair kit I put in was loose
 
Link to flange image which I was coached with on AT.

 
I've never leveled a toilet. Have you tried pulling it tight to the floor? From your old pic, it looks like its high on the shim side.
 
My understanding is that the flange should be screwed to the floor, and tile or other flooring should go around it. I typically will screw it down to the hardibacker or underlayment. In many cases, people will install tile around the drain pile, then install the flange by screwing it down through the tile. If the flange is too high, it will cause a pivot point and cause the toilet to rock, which can cause the wax seals to leak.

There are 2 or 3 different kinds of wax seals you can get. There are jumbo ones that can help fill in gaps.

Additionally, there are rubber gaskets available that are waxless. Some solutions have extensions that create a seal and then drop into the flange.

More recently, fluidmaster started selling this. I haven't used it yet, but bought one to keep on the shelf:
 
My understanding is that the flange should be screwed to the floor, and tile or other flooring should go around it. I typically will screw it down to the hardibacker or underlayment. In many cases, people will install tile around the drain pile, then install the flange by screwing it down through the tile. If the flange is too high, it will cause a pivot point and cause the toilet to rock, which can cause the wax seals to leak.

There are 2 or 3 different kinds of wax seals you can get. There are jumbo ones that can help fill in gaps.

Additionally, there are rubber gaskets available that are waxless. Some solutions have extensions that create a seal and then drop into the flange.

More recently, fluidmaster started selling this. I haven't used it yet, but bought one to keep on the shelf:

I was thinking something like below.
I will cut the pipe close to the floor as possible then install below or the one @Greenman recommended in my previous thread.

 
Doing a measure from my picture last year flange is around 1/2” above the floor/tile top.
Does your toilet rock or does it sit flush with the floor? (Not trying to make a pun)

If you can get a good seal between the wax seal and the flange, you may want to look into shims like these:
Before you crank down the flange nuts.
 
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