It is not unusual to use 'of' to denote the place where a person 'belongs', whether it's a town or another type of institution. It's a way of defining that person. This was done a lot in the past, and is still done now, especially in journalism and legal situations. For example, 'Dr Dan Schmidt of Harvard University'.

Yes, it does mean he is from Manchester. You could of course use from, but the writer chose to use this form instead. The reason may just have been something like fitting the words to a newspaper column. It may also have been because that form is common in the style of police reports, particularly with a full address. It would be quite common to say something like: "Mr Darren George Halliwell, 48, of 6 Boggs Lane, Upper Cuttingdown, Manchester, was arrested last night."

When you say someone is 'from' somewhere it usually means that is their place of origin, of birth. So you can be 'from' one place, but currently living in another place. The term 'of' is used to denote your current place of residence.

I'm not 100% sure on this but I think it is something to do with the way peoples addresses are announced BH the police and in courts. From is correct, but here in England when address details of criminal are announced on TV or in the press (and in court), the word 'of' is normally used.