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I would like to understand how does data get synchronised from a report in SC to Marketing Cloud, specifically the "Send to SF Report" feature.

Is this a one time import of the records from the report, or does the MC connector periodically query the report and update the related Data Extension? Are there ever any instances where if the email addresses for the Subscriber isn't found, they revert to the Report Creators email address?

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The report is refreshed at the point in time your email is sent to the report. The workflow looks like this:

  1. The report is run to get Contact/Lead IDs to send to (other fields in your report are ignored).
  2. The values of all the fields mapped in "Email -> Subscribers -> Profile Managment" are retrieved for all the leads/contacts in your report.
  3. A new temporary Data Extension is created and the data retrieved in the previous step is imported into it.
  4. The email is sent to the temporary Data Extension.

If you send a second time to the same report, the above process repeats itself, a new Data Extension is created and you send to the new temporary Data Extension.

I don't see a scenario where the email address of the lead/contact is dropped in favour of the report owner, unless you've done something strange with the report type and re-labeled the record owner field in your report to "Lead Id" or "Contact Id".

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