I trash the sludge, just give it a squeeze with the love glove and get out all the oil/butter. No right or wrong way, I just dont like the plant matter or the chlorophyll taste in my oils or butters, its why put my oil in capsules.
everclear is good to go in the machine. I made a couple batches and gave it to my daughter. I ran the MB on the back deck outside with everclear.
Pro tip, head to home depot or Lowes and get a 6 pack of paint strainers. I run 2 of em to keep all the particulates out of my stuff.