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the difficulty is more around enemy damage mostly. the stealth, gameplay stays unchanged.

Recruit allows for more dialogue options, which allowschoice for different story branching and some perks. I'd reccomend picking recruit because it only adds to your choices.

https://www.change.org/petitions/sega-increase-the-number-of-pc-releases-segapcports

Yes, recruit does have some extra dialogues as does veteran which you unlock by finishing the game. Those dialogue options are actually marked "recruit" so you won't miss it. I'd definitely recommend picking recruit history option.

Keep in mind that character class has a huge hand in determining difficulty.