You're right. All of the manipulations in the parentheses should happen in the next 5 sts. Your stitch count won't change because the K5tog tbl x 3 and the yo x 2 will give you back the 5 sts. It's a similar idea to the sts shown in this video:
You'l k5tog tbl but don't drop the stitch from the left needle, keep going with the yo, k5togtbl, yo, k5togtbl into that same group of sts.
Very clever pattern
and nice looking top.