That tweet is very vague. Anyway, the decision for the definitive engine for AMCA is yet to be taken. It will be the product of whatever GTRE comes up with SAFRAN, but you can't dismiss its failure either. So they have kept the window open for cooperation on new engines with the British and Russians also, maybe even the Americans, including outright import of a next gen engine. The EJ2x0 is also high up on the list of candidates for AMCA alongside K10, K11 etc. What this also means is the French will not be able to hold our program hostage. If the Indo-French program fails, there will be alternatives.
The number with the letter K indicates the thrust level. K8 = 7-8T. K9 = 8-9T. K10 = 9-10T. Obviously K10 won't be enough to power the AMCA, which requires a K12 if you will, ie 11-12T. GTRE has plans for higher thrust engines as well.
The French are not helping us develop a definitive engine for AMCA, they are only helping us develop a working engine which may later be used on AMCA. Whether that engine will actually be used by ADA for AMCA will be decided by ADA at a later date, and it will have to compete with other foreign engines. GTRE is only a participant. Regardless of whether GTRE's dream of powering the LCA and AMCA with an Indian-designed engine succeeds, their engine will be used to power trains, tanks, ships etc.
This is a 10+ year program after all. The only engine confirmed for AMCA today is the F414. So I think the tweet is dismissing the Kaveri for the initial flight test.