Yarn over and then purl 1?

It’s unusual to have you pick up twice as many sts as were bound off at the underarm but it may be to give you a bit more stretch at the underarm and width to the sleeve cap. You can pick up in every V and in some of the spaces between sts to get to 8.
The pattern does refer to the newly cast on sts at the underarm (4sts not 8) although the wording is a bit odd. At least for each size the numbers are doubled. It doesn’t seem that there’s an error in the number to cast on at the underarm (8sts rather than the 4 in the pattern) since that would adversely affect the sts needed for the lace border.
It would be worth an email pointing this out to the editor or publisher in both cases. You are actually test knitting and editing this pattern for them.

I saw someone else on ravelry had also done it, but they did the large size so I don’t think they had the issue that I’m having on the small where the numbers don’t quite add up. I think it really is just the small size having that issue

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I agree. I checked out several sizes and they seem to make sense and will work with the lace border. Good of you to pick up the error in the small size.