I have read a couple of articles recently advising against buying the basic MacBook Pro with the 8th gen processor. Either go with the new MacBook Air or, if you need the features of the Pro, go for the new 2020 one with 10th gen processor.
This 2020 Pro has 16GB of RAM, 512GB of storage and four Thunderbolt ports instead of two. See this article
Applecare is up to you. I have personally never been a fan of extended warranties.