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Hi Anthony,
Both Spotify instances should work on the same Pi. However, make sure that the playback outputs do not overlap as Spotify Connect and Squeezelite are individual players that need individual outputs (e.g. Squeezelite -> sound card output, Spotify Connect -> HDMI output). We are currently working on a Soft-Off feature to allow both players to interact and use the same output, but this is still not ready. Of course, you can also manually start and stop the one you want to use for the output device of your choice.
With Spotty for Squeezebox, the Login happens with your account for the first and keeps using this login. With Spotify Connect, you also need your own Login to get it started. But then you should be able to use any Spotify app with any account to play to it.