Looks to be an Echeveria to me as well and it needs a few things to change quickly if it's not too late. First it should be repotted in a faster draining mix as you mentioned, try to do that as soon as you can. It should also be potted up higher in the pot because the pot is blocking most of the light trying to get to the plant. Which is the next point, it needs more light. Lastly it will need sufficient air circulation especially if you're in a humid area. As for the leaf propagation, you'd have to take healthy leaves if there will be a chance of growing babies from them. If they are already distressed or starting to rot like the lower leaves currently are then they will just continue to shrivel and die. I have a rough time with Echeveria here in FL mainly because of the humidity, but they seem to do best if I pot them in 70/30 mix of perlite and soil (provided that's all you can get). If you're in a less humid area then a 50/50 may work. Also might be best to get it out of that soil now and leave it bare root until tomorrow if you can't repot it right now. Maybe others will have some better suggestions as well. Edit: by the way is that L. williamsii in the background? If so I'm so jealous and wish we could get them here. :(

It looks like what you did in your original post has done the trick as the new leaves are vibrant green in color. The really hot peppers start off slow real slow then take off and give you more peppers than we know what to do with. Maybe slugs or caterpillars got ahold of the leaves, glad it seemed to have stopped.

I am concerned with my plant, the leaves are “thinning”. the color is still green but it looks different when i bought from the shop to now (its only been a month). It is sitting by the window, i mist the leaves daily and water every 3-4 days. Not sure what im doing wrong but it looks not happy to me.

Unfortunately, the blemishes are a forever thing. Animals/people are different from plants in that animals are regenerating organisms, and as such are able to heal by repairing/replacing cells in their formal spatial position. As generating organisms only, plants are unable to 'heal' the same way animals do. The plant starts life in the understory and spends the early part of that life struggling to reach the upper canopy where it can finally come into it's own. Though some precautions should be taken (in some circumstances) when increasing the photo load significantly, it's good to remember the plant would love summer outdoors in a full sun site when temperatures allow. I have about 30 ficus more than 10 years old and many more which are younger, and all are sited in full sun all summer. As the blemishes are not pathogenic, they won't spread; however, if the cultural cause remains in play, there's a high probability it will continue to happen. While I can't say with specificity why the blemishes appeared, I'm not in doubt it's oedema. It might be worth making a hole through the sidewall of the pot where the wall meets the bottom, and pushing a wick into the hole. Then, after a thorough watering, tip the pot to a 45* angle so the hole with the wick is the lowest point on the pot. Then just let it drain until it stops. That will remove significantly more water after a thorough watering, such that at least 15-25% of the total volume of water applied exits the drain hole. Plants grow by laying down files of cells in the vascular cambium. They do this only when they are producing more food (during photosynthesis) than required to maintain the plant's respiring mass - it's living parts, which is genetically obligatory. It's very common for plants grown indoors to 'stall' when the combination of light, temperature, and/or other cultural conditions, limit the plant's food-making ability during the slow winter months, even to the degree the plant sort of switches temporarily to battery power (stored energy reserves) when ambient photo load is inadequate. If your plant was circling the drain, it would be a concern, but given the condition your plant appears to be in, I wouldn't let it bother me too much. Your plant grows in sort of a hopscotch manner. Root growth always precedes top growth. Only when the volume of roots is large enough to support new top growth will you see new top growth. As soon as roots are taxed by the volume of the top, top growth stops or slows markedly to allow roots to get out in front of top growth. If anything occurs to limit the volume or efficiency of the root system, we can expect the limitations of top growth to be immediate, even if not always immediately conspicuous. Al