Specific stages I'd like to see are: 1) tracing or cutting out panels from full-size plans, 2) lofting using offsets, 3) scarfing panels with a block plane or belt sander, 4) making deckbeams with laminated plywood, 5) making cockpit coaming rim.

Also, I was wondering if it is best to simply trace full size plans and cut out the panels that way or if you get fairer curves by using offsets and a batten. Thanks.

I've put together a few S&G projects, one from a kit; the rest from offsets (from the Hulls software, and a (free) Guillemot S&G).
I'd trust offsets more than using a long, skinny paper plan (if that's what you get from CLC). Paper is pretty easy to stretch, and is affected by humidity. Mylar plans would be no problem. Laying out plywood pieces from the offsets I used was pretty easy - it was like a basic X-Y graph.

I don't know about CLC, but the Pygmy boats use butt joints with fiberglass to make up the strakes from the (8' ?) plywood pieces. If you are painting the boat, scarfs would be fine, but they wouldn't look very good (IMO) on a clear-finished boat. You also lose a bit of length with a scarf, which could be an issue depending on boat and plywood lengths.

Don't the CLC plans come with a 'building manual' ? If you look around online you can probably find a Pygmy or CLC assembly manual.