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I mean, does God really have feathers

No (Ps. 91:4) , which is one of the examples of anthropomorphic language, which is one of the examples of non-literal language, which uniquely abounds among humans, and as with Scripture, usually we effortlessly recognize such by the context of it.

"Orioles slugger slams Cardinals hurler," is easily recognized by us in the context of sports, in which figurative language abounds.

For those familiar with language and Scripture, things like "And Adam knew Eve his wife; and she conceived, and bare Cain," (Genesis 4:1) "neither fear ye the people of the land; for they are bread for us” (Num. 14:9) are easily recognized as figurative language.

Does He allow, or forbid, dancing? What does He say about blood transfusions? Should children be aware that adults drink alcohol? SHOULD adults drink alcohol? Does God forbid school bake-offs to raise money, or are the prizes gambling? And so on.

There are cases in which there is disagreement, but the other examples you invoke are not due to to language being literal or not, or are more of a case of not considering all Scripture says.

Blood transfusions are forbidding by some based upon the literal injunction against eating blood, (Lev. 17:10 and perhaps Acts 15:29), yet, as with not working on the Sabbath and not eating the holy shewbread, can be allowed in the interest of fulfilling the intent of the law, which is to save lives, not destroy them. (Luke 6:1-9)

Some also consider this command as being part of the abrogated dietary laws. (Col. 2:16,17; Heb. 9:10)

Should children be aware that adults drink alcohol? SHOULD adults drink alcohol?

Again, this is not due to literal versus figurative language, but the condemnation against literally being among winebibbers or getting drunk, (Prov. 23:20,29-35) or drinking giving wine to others who get drunk, (Hab. 2:15) and or the literal prohibition against OT ministers drinking during their course of ministering, when they go into the tabernacle of the congregation, (Lv. 10:9; Ezek. 44:21) since believers constitute the only priesthood (hieráteuma) in the NT church.(1Pt. 2:5,9; Re 1:6; 5:10; 20:6)

Does God forbid school bake-offs to raise money,

Again, this is not a valid case of literal versus figurative, but could be based upon the fact that the NT church did not look to those without for support, but "for his name's sake they went forth, taking nothing of the Gentiles. We therefore ought to receive such, that we might be fellowhelpers to the truth." (3 John 7-8)

This refers to charity, yet should not exclude receiving surplus food to serve God with, nor engaging in commerce such as selling property, but as a means of regular support I think it is contrary to the principle of the church relying on the support of members.

or are the prizes gambling? I do not see this either as being a case of literal versus figurative, but likely be based on the principle of needs being provided by labor, and not by vain means. (Gn. 3:19; Prov. 13:11)

Does He allow, or forbid, dancing?

This relates to literal versus figurative only as regards "touching." Forbidding dancing is not clearly addressed except based upon "It is good for a man not to touch a woman" (1 Corinthians 7:1) which is in the context of being celibate versus marriage, and (comparing Scripture with Scripture) that it does not actually forbid any touching at all btwn genders is seen by the command (repeated 4 times) "Greet one another with an holy kiss." (2 Corinthians 13:12)

But "touch not" as forbidding intimate contact outside marriage is sound, and as dancing can to some degree involve or lead to this then some broadly forbid it based upon this principle.