Actually, you're the one that has it wrong. I've been pressing 1 for a year now, getting LS points, him transforming and subsequently getting killed along with some mobs that pop up after the cutscene.
You're welcome to run Kaon again if you don't believe me.
you are, but he will change if person who choose dark side won convo roll.
if you select light side and win convo, you will kill him.
pressing '1' will leave him to suffer and give dark side points.
also, you you take 100 DS and 150 LS, at end you will get 50 LS points
actualy, googled republic side Kaon video, you are correct too.
weird republic ways are... weird.