Yes, you're interpreting it wrong.
The important thing to know is that KMPS reacts with R-0871 and also with R-0003. When people say that KMPS only interferes with the CC measurement, they're talking about the color-matching DPD test, not the FAS-DPD titration ("drop") test.
In the DPD test, you first measure FC by adding reagents and comparing colors -- this part isn't affected by KMPS -- and then you measure total chlorine by adding R-0003 to the solution and comparing colors again. KMPS in the water will react with the R-0003, producing a falsely high measurement of total chorine. Since total chlorine is FC + CC, and the FC measurement was accurate, CC falsely appears higher than it really is.
In the FAS-DPD drop test, KMPS reacts with the R-0871 FAS drops, so in that test it's the FC measurement that is falsely high. By the time R-0003 is added to the solution to measure CC, all of the KMPS has already reacted, leaving none to affect the CC measurement. So in the FAS-DPD test, KMPS affects the FC measurement but not the CC measurement.
KMPS will dissipate in a few days. But if you anticipate that you'll be using KMPS regularly, you may want to purchase Taylor's K-2042 kit, which eliminates KMPS interference from the chlorine tests. A link to the kit is in my signature.