Hi Sathish,
Q1.is it possible to remote upgrade FPGA image in CFM through NIOS using ethernet?
Yes it is possible. We have example where it is using NIOS with UART (https://fpgacloud.intel.com/devstore/platform/15.0.0/Standard/an741-remote-system-upgrade-for-max-10-fpga-devices-over-uart-with-the-nios-ii-processor/).
Q2.one image RPD file size is 773 kilobyte and MAX10 FPGA (10M25DCF484C8G ) CFM size is 736kilobyte.
is it possible to compress two images and can load into CFM(0&1) for dual configuration?
Nope. You will need to store image 1 in CFM0 and image 2 into CFM1 and 2. Please refer to https://www.intel.com/content/dam/www/programmable/us/en/pdfs/literature/hb/max-10/ug_m10_ufm.pdf table 1