Under arm ease in sweater

I am knitting a top-down raglan cardigan with the construction based on the following pattern. I understand about putting the sleeve stitches on waste yarn… but get a tad confused after that.

Row 40 says to CO 12 sts.

Then continue knitting the body of the sweater.

When I get back to the arms I am supposed to pick up 12 stitches from the underarm. Are these the 12 stiches I CO earlier. Won’t adding the 12 stitches, just make the body of the sweater wider?

Here is the pattern:

Row 39: k til marker (28 sts), place next 34 sts on waste yarn, k til next marker (56 sts), place next 34 sts on waste yarn, k til end (28 sts).
(112 sts; sleeves are on waste yarn, left front, back and right front on needles.)

ROW 40 (WS): p til marker (28sts), CO 12 sts, p til next marker (56 sts), CO 12 sts, p til end (28 sts). (136 sts total).
Remove markers, if desired.

Row 41 (RS): K all.

Cont in St st for 5" (about 32 rows). (136 sts)

Work in 2x2 rib for 3" (about 20 rows). (136 sts)

Loosely BO all sts in pattern (2x2 rib). (136 sts)

Sleeves:

Place sleeve sts on DPNs. (34 sts)

Pick up 12 sts from underarm and join. (46 sts)

Work in the round (St st) until sleeve are desired length minus 2". (46 sts)

Work in 2x2 rib for 2" (about 12 rows). (46 sts)

Loosely BO all sts in pattern (2x2 rib). (46 sts)

Repeat for other sleeve.

When you cast on those 12 stitches and continue on finishing the body of the sweater, what you come out with at the end of that is essentially a sleeveless sweater. So then when you go back to put the sleeve stitches back on your needles and it asks you to pick up 12 stitches, you are picking up those 12 right along the cast on edge from when you put those 12 there in the first place. They will be the underarm portion of your sleeve and you are not actually making it wider.

Thanks, that is what I thought, but figured I should ask a pro! I have only made the Anthropologie Caprelet and it was short sleeved with no ease added.

Candice