I am reading a part of the paper below that computes the semistable locus in case of $\operatorname{Sym^3}(\mathbb{C}^2).$ Here is the part of the paper I do not understand:
Specifically, I do not understand the following:
Why are the linear factors of $g.p$ are given by $(a_i, b_i)g^{-1}$?

I can only answer a. If $p, q$ are homogeneous polynomials, then we have $$ g\cdot (pq) = (g\cdot p)(g\cdot q). $$ That basically follows from your definition of the action, and the fact that evaluation is a homomorphism of the multiplicative groups.
Now, let $$ g^{-1} = \begin{bmatrix} t_1 & t_2 \\ t_3 & t_4 \end{bmatrix}. $$ Then $$ g(ax + by)= a(t_1x + t_2 y) + b(t_3x + t_4y))=(at_1 + bt_3)x + (at_2 + bt_4)y = (a,b)\cdot \begin{bmatrix} t_1 & t_2 \\ t_3 & t_4 \end{bmatrix}. $$