Is this compatible with my android 4.2.2 device (Samsung cell phone)?
Do I risk losing any data (music library, playlists…)?
In case anything goes wrong: how can I reinstall to the default audio player provided on my phone?
Unfortunately you cannot (unless you use the privileged extension)
upgrade system applications. In fact you cannot upgrade to any app
that is signed by a different key at all. Those are built-in Android
security features.