I think you now have your arms around the "multiply the lower scale by 10" thing for the 50 V dial setting!
To summarize your measurements, the no-load adapter voltage is 8.5V DC. Loaded by 2 buildings it drops to about 7V DC. That seems a bit high to me for a 4.5V DC adapter where "full" load is 3 buildings. As to whether or not these voltages damage Menards buildings is something I can't answer. From what I've read, Menards does not specify operating voltage and current for various buildings...essentially saying to just use their 4.5V DC adapter.
Yes, that brief flash when you plug a disconnected (but recently powered) adapter back into a building is a capacitor inside the adapter discharging its stored energy.