Do you have to cut holes in the stamp?

I just pushed the 2 screws through the strap. It may have been easier to pre-cut holes first?

The issue of TSA compliance has nothing to do with the TagVault, but would be with the AirTag. I have had my check-in and carry-on luggage X-Rayed for a international flight and have not been questioned about it, I’m sure it showed up on the x-ray machine.

I bought a similar item from a competitor and when i put the airtag in it the airtag rattles (does not sit snuggly in it). does the same happen here?

Not at all - there is a rubber seal inside that keeps it snug and also protects the AirTag from water.

I dont see any speaker holes assuming that is for "security" reasons. So does the sound/track distance of AirTags significantly reduce due to this?

The capsule is water proof sealed and the sound is suppressed but you can still hear it when getting near. From experience, the iPhone is accurate when indicating distance from the tracker

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