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We have a multi-org enabled MC instance. My plan is to connect CRM prod with Parent BU then use SQL to segment synchronized data extensions and share them with Child BUs. Also have a separate BU connected to CRM sandbox. Here is the digram of my design.

enter image description here

I have few questions on this design

  1. Will I be able to use Salesforce entry source in BU1 and BU2 from CRM Prod?
  2. Will Individual email results get synced up with CRM prod from Child BU1 and BU2?

Having said that, I did some research and found out that there is no connection inheritance from Parent BU to Child BU in Multi-Org and I have to connect each BU separately as shown below but not sure. enter image description here

Unfortunately I can't test this as it is Prod environment. Can you please provide any insight on this approach?

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It seems you already have the answer but here is my confirmation.

Once MC multi-org was enabled, the child BUs no longer inherited the data of the parent BU. Therefore the #2 design is a better match for your needs. So you can have MC connect each BU to:

  • Use Salesforce entry source in journey builder
  • Sync individual email results to Salesforce CRM

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