We feed very little, so no likelihood of bloat. As I said above, the sheep can cough a bit at first if they’re dry, so we moisten - moisten, not soak - for the first week or so.
They seem very popular with ponies, sheep and cattle alike. We don’t need to do anything to make them palatable. But as I said, we feed very small amounts. If you’re wanting to feed a pound or two, as we sometimes do for the dairy cattle, mixing with soaked sugar beet seems to work well. The grass pellets do fluff up a bit, but not massively.
ETA. The pellets we use are the Dengie All Stock ones.