@ConfusedOne,

It sounds like you are trying to use the device in a three-way configuration, which the KS230 is meant for. I know users have had success using switches in other configurations, but I do not think that this extends the same to dimmers. You may try using the KS220 in the other light switch as there is a main and a satellite in three-way configurations, but is is not officially supported and a device meant for 3-way connections is recommended.

Also, the indicator light flashing green and orange indicates that the device is simply ready for setup in the Kasa app - where you will be prompted to perform a dimming calibration. Which sets a minimum brightness for the lights so as to avoid flickering at the lower levels.