I’m not 100% sure, but it seems from quickly looking at the pattern that you are keeping those first and last 6 stitches in the plain rib pattern (knit on RS and purl on WS). So, perhaps with the number of stitches you have the repeat doesn’t work out evenly? I’m not sure why they would do that, or whether or not it is crucial to the pattern for the repeat to be completed … myself, I would try doing a few rows like that (continuing on keeping the last 6 stitches in the rib pattern) to see if it looks right. If it looked right then I would know that I was on the right track, and if it didn’t then I would know that there was something wrong and rip back.
Perhaps one of the more experienced knitters here will be along soon to offer a more concrete answer!
You should be decreasing 8 sts on that row, from 86 to 78. I suspect the ‘k3’ after the dec should be ‘k2’, but that still doesn’t make sense as there are 10 (or 11, if it should be k3) repeated stiches. Dropping the YOs will dec the sts, so that’s where part of them go.
I’d email them and ask about it, there may be a correction needed for it to work out right.
Thanks so much for researching this for me. I guess you’re right, I’m going to have to play with it. I have contacted the company and after 2 weeks still no reply. I’m certainly not a good enough knitter to correct patterns - guess I sort of feel they should all be correct. ha (in a perfect world that is).