P3 from the YOSE manual - you are maybe right in assuming it has got lost in translation
Verbatim
P3 is for power assist control mode, when P3 parameter setting is1, power assist control mode is gear 5 of "imitation torque control" mode, when P3 parameter setting is 0, power assist control mode is gear 5 of "speed control" mode. P3 parameter needs to be determined according to the distributed function of the controller, its setting range is 0 or 1,
Let me translate all those manuals for you.
When P3=1, you have current control, where each level on the LCD is a different current (current = power) and there is no limit on the speed on any level. The throttle works proportionally as a speed controller.
When P3=0 you have speed control, where both the PAS and throttle work as speed controls. This means that there are different speed limits for each PAS level and no limit on power. What it effectively does is divide the throttle signal into 5 steps and works as a cruise control. Obviously, if your PAS is on level 5, it gives the maximum throttle signal when you pedal, so nothing will happen when you turn the throttle.
The difference in practice is when P3=1, you get smooth adjustable power to suit how you feel and on low power, it's easy to control the bike at low speed, but when you encounter a hill, you have to push the button on the LCD to get more power, then turn it down again afterwards, or you can use the throttle if you have one for a temporary power boost.
With P3=0, you always get a full power at start, which makes it a bit jerky and it's difficult to control the bike at very low speed, but you don't need to adjust the power so much for hills, because it works like cruise control, feeding in more power as you slow down, in an attempt to get you back to cruising speed.
Not all KT controllers work exactly the same. I've seen some differences, like one went to level 5 as soon as you opened the throttle, but only when you were pedalling, otherwise it worked proportionally.
The guys that wrote those manuals probably don't even know how the controller works. They probably got some instructions from the engineers that they had no chance of understanding, since even on this forum, ebike enthusiasts struggle with these concepts.
In Chinese English, Gear = PAS level, Handle = throttle and torque simulation means current control.
Above statements about speed are all subject to the global speed limit set in the basic settings.