They might be right! Or they might have misunderstood the question. I'm having trouble visualising the setup, so I drew a picture.
If I understand the switch correctly, whatever you plug into the USB A ports on the front are always active on one device or the other. Then the devices you plug in to the two USB C ports on the back are the ones you switch between. Is that right?
So is your setup like this? You can use the PC+monitor with the keyboard and mouse, OR the laptop with the keyboard and mouse. But you can't use the monitor with the laptop and keyboard and mouse?

Edit: Here is how the KVM setup would work. Specific mouse and keyboard ports, specific device ports for plugging in the PC and laptop, then an output for the monitor(s) that will show whichever device is active on the switch.
I'm not sure how the docking station fits into things, it might not be necessary as the KVM would take it's place:
