Can I have /Users as my home folder? My home directory location is set to /Users, so whole /Users folder. I know that each user normally has their own folder in the /Users folder, but would it be ok if I'm using my MacBook alone?

Also, is there any problem if my account name and the home folder name are not same?
There is no problem with this. Account name and home folder name can be different.

It’s okay even if you are using your MacBook alone.