With $\mu$ being the Möbius function, there exist infinite possibilities of square roots. For example, for each $n$ such that $\mu(n)\neq 0$ there is a choice: if $\mu(n)=-1$, we can choose to define $\sqrt\mu(n) = \pm i$, and if $\mu(n)=1$, we can choose to define $\sqrt\mu(n) = \pm 1$. And any of those specially chosen $\sqrt\mu$ will satisfy $\sqrt\mu^2 =\mu$.
We can remark that there are infinitely many choices of square roots $\sqrt\mu$ such that $$ \forall x,\,\Bigl| \sum_{n\leq x} \sqrt\mu (n) \Bigr|\leq C, $$ where $C$ will be a constant $C\geq\sqrt 2$. Just choosing "online" a square root of $\sqrt\mu(n)$ to satisfy the bound.
We can remark that there are infinitely many choices of square roots $\sqrt\mu$ that are multiplicative. One can choose $\sqrt\mu (1)=1$, then make an infinite number of choices for each prime $p$: $\sqrt\mu (p) = \pm i$. From those choices, we can impose the multiplicativity of the square root $\sqrt\mu$ infering all the other values of $\sqrt\mu$ from our "offline" choices on primes with the multiplicative rule.
Question: Is a multiplicative (2.) and bounded (1.) square root $\sqrt\mu$ of the Möbius function known to exist?
Bonus 1: If so, does multiplicativity (2.) imply the boundedness property (1.)?
Bonus 2: What would be the lowest possible value of $C$ ?