This video first completes Method 1 by introducing and showing how to use the Magic needle Selector Wand on an LK150 basic knitting machine. This tool will work the same way on a KX350, but you must purchase one specific to the 7 mm machine. The LK150 is a 6.5 mm machine, and the KX350 is 7mm; therefore, most of the tools and attachments cannot be shared between them.
The Magic Needle Selector Wand can be purchased from Knitting Any Way https://www.knittinganyway.com/ourproducts.html#!/Magic-Needle-Selector-Wand/p/72375708/category=30839517
Instructions for Fairisle Method 2 begin approximately 10 minutes into the video. Method 2 is a variation of Method 1, and if you have not yet watched that video, I highly recommend you do so. That is the method shown in the manuals for both LK150 and KX350 knitting machines.
I hope this helps you make sense of the somewhat confusing instruction in the machine manual.
Irene Woods