I have a I KT4 and I got the same. So I started again and did the alt method.
To get out of the demo menu and start again, I entered the sideload menu so USB would mount, created a file called DONT_CHECK_BATTERY (cause my kindle wasn't fully charged) and pushed the "resell device" menu which reset the device to "out of the box" status, I skipped the inital wifi setup so I could get to the main menu so I could enter things into the search bar, then I did the alternative Demo Mode entry method. Then did the rest of the process as the guide stated and it worked for me.
Quote:
Alternative Demo Mode entry method:
Create an empty file named DONT_CHECK_BATTERY at the root of the Kindle USB storage
Activate demo mode by typing ;demo into the search bar
Once in demo mode, skip setting up wifi and enter dummy values for store registration when prompted
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I wasn't prompted for wifi or store registration when I was in demo mode, so I just skipped those steps and it was fine.