Accepted answer
Worth being precise here: the distinction that resolves most of these questions is understanding that bacteriostatic water is a preservative system for multi-withdrawal presentations, not a substitute for aseptic technique.
A vial that has been sitting out at room temperature is not sterile and bacteriostatic water does not make it so.
Different manufacturers of "bacteriostatic water" vary in their formulation, and some are better than others — brand matters.
Benzyl alcohol efficacy in suppressing common skin and environmental bacteria is well-established and published.
I would treat the 28-day date as a guideline rather than as gospel, particularly if the vial has been handled poorly.
The practical summary: use bacteriostatic water for multi-withdrawal, store refrigerated, and respect the 28-day limit.