Well, some might be really amazed. They could see a new side of Deku that they never knew before. His singing might show a different level of confidence or a hidden talent, so they would probably cheer him on.
One interesting plotline could be Deku having to face off against his classmates in a series of challenges that test not only their quirks but also their teamwork and strategic thinking. Maybe there's a misunderstanding that leads to the conflict.
No way. The manga portrays their connection through mutual respect and competition in their journey to become great heroes. A kiss is not part of that narrative at all.
In some fanfictions, Bakugo can become more empathetic. For example, if he experiences a situation where he realizes the pain he's caused Deku over the years. His aggressive nature might soften as he starts to understand Deku better. Deku, on the other hand, could become more assertive. Instead of always being the timid one, he might stand up to Bakugo more firmly in fanfiction scenarios.
Deku himself is likely to shine. Given his powerful quirk and his growth throughout the main series, he'll surely put up a great fight against his classmates. Bakugo could also shine as he's always been in competition with Deku and has a very strong quirk.
Bakugo would likely be furious. He'd feel betrayed and would probably be the first to attack Deku, yelling at him about how he's thrown away everything they've worked for. Uraraka might be more empathetic. She'd try to understand what drove Deku to become a villain and hope there's a way to bring him back to the side of good.