Check out this guide.
https://documentation.meraki.com/MS/Layer_3_Switching/MS_Warm_Spare_(VRRP)_Overview
> Do the MS350 switch setup need a dedicated LAN cable for warm spare to pass the traffic?
No. There does need to be a cable connecting them though.
>If there is a dedicated LAN cable between MS350 switch, the uplink of switch 2 Gi0/1 should be automatically blocked?
I don't know what your NSGs are. If they are layer 2 devices and forwarding packets like switches some link will block to remove the loop, but there is not sufficient information to save which link that will be,
> Is the AP in switch 2 will still work based on the setup that will pass the traffic to the switch 1?
Yes.
>What will be the configuration of the ports in dedicated LAN cable? Is below correct?
I would make them trunk ports, and not touch either the native VLAN or VLAN allowed list. They appear to be the core switches and I see no reason to place restrictions between switches in this environment.
>I have seen MX documentation using VRRP, there is a configuration of 1.1.1.1 and VLAN 1111, do I need to do this both in Meraki switch in LAN port Gi0/2?
No. And I wouldn't do it on MX either.
>If we will not be using the VRRP configuration in MS switch, is the diagram connection still okay?
Yes. However, I would strive for a layer 2 loop-free environment. Their is not enough information about the other devices and weather schedule outages are ok or not.