I don't know of any true antibiotic that can be used in a reef tank safely, at doses that won't cause other issues with the invertebrates and beneficial bacteria.
The lesions and the scalloped dorsal fin are how YT show HLLE. I used to tell people that HLLE lesions are mostly benign. This was based on a large number of fish that I worked with at a public aquarium that had lesions for over a decade and were still "healthy" in other respects. HOWEVER, more recently, I sent some fish out for histopathology that had HLLE, and they found bacterial infections in the lesions. It doesn't take much then I think, for an opportunistic bacterial infection to spread more widely on a fish with HLLE, and that is likely what is happening here.
In terms of this spreading to other fish? Unlikely, as the bacteria found in the lesions were common aquarium bacteria that healthy fish are exposed to all of the time....
Jay