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Hello and welcome to MobileRead!
As to unwanted updates, you don't necessarily need to jailbreak to avoid them. Just keep wifi off and sideload your books via Calibre. You can install updates manually if you want them. And no, installing updates doesn't mean you have to reload all your books. They should stay on the device. Still, going from 5.6.1 to 5.12.4 is a very big step and probably messed up your device.
If you do want to jailbreak, there is a Kindle Developers subforum in the Amazon Kindle section. You can find help there.
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