Firstly let's look at your wording.
Legolas waits before defending against the water prison, activating Toad Senjutsu first before reacting, The toads being perfectly still on his shoulder and applying natural energy to him while he synchronizes the chakra and adapts it to his chakra system. As Senjutsu is activated, and the insect sphere is nearly completed forming around Legolas, surrounding him with darkness.
In what way would this NOT be short range? You let the bugs close in on you as you worded it nearly completely formed. So the technique would be in range. Also the technique used isn't just Genjutsu as I described as a combination Genjutsu which uses actual smell and not just insertion of chakra, so I wouldn't think you'd be not affected by the technique because of Senjutsu chakra; it's not a regular Genjutsu, hence the Aburame Secret Technique. In my opinion you'd be affected regardless of Sage Mode. That's just my opinion, I may be wrong.
Also with the water bullet, I destroyed the part heading towards me; it's an omnidirectional blast, which I wouldn't need to defend against the other directions not pointed at me. So in essence, yes I did destroy only part of it, as that's all I needed to do.
If we were to go off the wording of your current response, the TF would be
Summoning>Merging>Water Prison>Shock>Water Bullet>Sealing>Bugs which is incorrect in more than one way.
It should be Summoning>Water Prison + Bugs/Merging>Shock>Phantom Smell + Water Bullet
Your wording is just confusing as the bugs around you were charred and there's no more enclosing on you to defend from, they're in long range.
Continuing though. I'll defend from your current move as I hate arguing.