Will there be any outage ? - PSConfig always stops the services while running and causes an IIS reset. So there will be an outage while you run PSConfig on that WFE. Other servers should continue to run normally.
Will all the settings be copied over to the New central admin (AAM and other jobs info) - This just creates a new CA web site. The settings are all in the Config Database. So unless you customized
the CA site (which is uncommon) all your settings should be preserved.
Do i need to kick out the corrupted server once the CA is hosted on the new server, So that a fresh install can be initiated ? - Moving CA to the other server will not require doing anything with the old server. But if more than CA was affected you will
need to repair/replace that server.