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KAIO is pry the best paint cleaner/prepper around still, old dinosaur but its still strong as hell. You'll be fine using it and going to whatever sealant or wax, it only leaves behind a very, very light layer of acrylic coating.
it's a great paint cleaner, but doesn't correct(swirls, scratches). It will clean the paint chemically that will strip any wax/sealant. It's a good prep if you don't need to correct. Like all have said above, it will leave a very light layer of acrylic coating that probably won't last that long. You might want to look at XMT 360, Poorboys Polish with Sealant, or Optimum Poli-seal for light correcting abilities that will leave behind a light layer of sealant. Good luck!
I think you are seeing the oxidation being cleaned up. Clearly the scratches are still there. You simply removed the clouded(oxidized)/old paint/clearcoat.
I don't know on paint, but using KAIO on glass (windshield etc) water will bead off for over a month.Some of you may be surprised how long AIO will last on its own. In a hurry, I wouldn't hesitate to use it as a standalone...I've gotten weeks and weeks of protection on a car that sits outside in the Florida heat + rain.