Use "a lot" when you want to convey a general sense of a large quantity, but don't need to be specific. Use "lots of" when you want to emphasize that the quantity is substantial or plentiful.
Yes, "a lot" is often used as an adverb to describe the degree or extent of something, such as "I like this movie a lot." "Lots of" is typically used as a noun phrase to describe a collection or abundance of something.
Context matters in English because the meaning of words can vary based on the surrounding words, phrases, or situation. Words often have multiple meanings, and the intended sense becomes clear through the context in which they are used.
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