This is not what the code says.
Romex CAN be installed in conduit and this is often done if a small section of the wire needs to be protected. You do need to be concerned about cable fill
Romex CAN be run on the surface. The wording in the code just states it cannot be subject to damage. That is somewhat vague and different jurisdictions have varying interpretations, so it would be best to check what is acceptable in your area.
Most would agree it cannot be run unprotected at say 4' high on the walls since it could be easily damaged. But at 8' or 10' high on the ceiling it is pretty tough to argue that it is subject to damage, at least in a typical garage.
Yup, I think I'll wait to talk to my inspector before I make my next (and i really hope my last) trip to Home Depot for this everlasting project.
Yes the THHN would have to be completely in conduit.
Is your walls just sheetrock? Why not just cut a long strip where you will run the wire, drill the holes and run it through the studs, put some metal protector plates in so you don't try screwing into the stud where the wire will be, replace sheetrock (original pieces if you are careful / lucky), patch & paint?
Honestly, don't do anything else till you talk to the inspector... It's really up to him if you could run one of your existing cables you have in conduit. He's the final say in the matter...
He might let you run the 2-2-2-4 in the conduit, and *worst* thing just want to de-rate it down to 75A. We are only talking about a 15' run, IIRC so I don't think it would be that big of a deal.... If you were trying to run like 50', that would be a different matter....
Walls are painted sheetrock, but nothing I'd be bummed about cutting into. I'm honestly just after the easiest safe solution. I'm going for function here and not much more. I just want to power my tools/toys.

If I can easily surface mount it, great. If I have to cut out a 15' strip(s) of drywall and run it in the wall, then so be it.
I'll try to get a hold of the inspector tomorrow and pause the project until he gives me some input. I'll let him weigh in on the Romex above 8' on the wall and the supply power from the main to the sub. Whatever he needs to see, I'll make happen and finish this all up this week, if possible.
I feel like I've done about 2 hours of online homework for every 5 minutes of actual work on this. It's getting frustrating, but the end is in sight.
Thanks again for the help.