Without going into the specific variation, you are exactly right about the computers' inability to understand even the most basic concepts of Black's play in the KID.  To give one example that didn't occur in the KID but that highlights the problems computers have was the game Kasparov-Deep Fritz that Kaspy won by suffocating Black.  Just about every human on the planet (rated over, say, 1700) was shouting that the computer had to play ...f5 against White's big center (a very major theme in the KID) but all the computers blythely agreed that Black was doing just fine without the pawn push.  The computers were all wrong.

Unfortunately, the number of positions in which computers are absolutely useless is dwindling by the day.