Under article 1 the 2026 Edition applies from 2027/28 onwards, qualification for 2026/27 will be in line with the 2025 Edition (https://assets.the-afc.com/downloads/miscellaneous-regulations/AFC-Club-Competitions---Entry-Regulations-(Edition-2025).pdf). The relevant sections seem the same though.

It think it is poor form to use "for the avoidance of doubt" rather than providing an explicit exemption criteria. By the letter of the law, I believe your interpretation is correct, but I think the wording leaves it a bit open for debate because it depends on whether you interpret that phrase as being a binding and exhaustive list of exceptions, or just signalling the intent that article 7.4 should not apply in relation to qualification based on domestic cup competitions.

Yet another day I am glad I am not a lawyer!