You're no configuring a port but the management address of the switch. You can't have L3 interfaces on an MS120. It would also not make sense to have a management VLAN with a /31.
If you would however have an MS2x or higher you can create VLAN interfaces and those will need to have a /30 or less.
Oh yes that is a typical one. If you have a public subnet behind the ISP router you will need to run a /29 if you want a primary/standby firewall. You only need to configure the external vlan on your switches.
The other possibility is just to have the ISP run a private subnet behind their router like the typical 192.168.0.0/24 and you use 192.168.0.2 as virtual IP on your HA pair and have the ISP port forward every incoming flow to that IP.
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