This might be a trivial doubt. It is from the book "do Carmo Differential Geometry of Curves and surfaces"
Here, it is mentioned that "the tangent vector $N'(0) = dN_p(\alpha '(0))$is a vector in $T_p(S)$".
How is that? I would like a geometric as well as mathematical answer.
Later, the author writes the following -
How is $dN_p(x_uu'(0) + x_vv'(0)) = \frac d{dt} N(u(t), v(t))|_{t=0}$?


As you found yourself, the answer to your second question is that the author abuse notation. The same goes for your first question. It is rather $(N\circ\alpha)'(0) = dN_p(\alpha '(0))$, which follows from definition.
As for the answer to your first question, note that $dN_p$ has codomain $T_p(S)$ and so $dN_p(\alpha '(0))\in T_p(S)$.