New developments on this issue:
Although the expiration date on the license was 11/7/13, the key usage report showed the expiration date as 48 hours later or 11/9/13. As the second expiration date passed, the clients dropped the old license and began using the new. They also began to show correctly in the security center as licensed. This was true for all but 3 clients which apparently did not receive the new license from the server. For those I removed KES and re-installed.
So the problems could be summarized as follows:
If the new KES 8 license format (compatible with version 10) is installed in KSC 9:
1. The license is not recognized by KSC 9 as a valid KES 8 license.
2. Despite this, if the license is installed in KSC 9 with the automatic deploy option, it will deploy to the clients (my 3 that did not deploy may have had other problems).
3. From that point forward, KSC 9 will refuse to deploy the license in a key/license deployment task, saying that the license is not valid for KES 8.
4. Despite this, if a new & clean KES 8 deployment is done from KSC 9, which includes the new KES 8 license, the license is deployed along with KES 8.
5. Even after the new license is successfully deployed to the clients, KSC 9 will continue to report the clients as expired for 48 hours after the old license expiration date. It follows the state of the old license rather than the new. However once the second date has passed, it does follow the new license. I suspect this is because the clients themselves drop the old license after the second date, as long as they have the new license deployed..
I believe these problems are all related to KSC 9 not being able to properly recognize the new KES 8 license format as valid. There seems to be some partial recognition, or perhaps internal checking is not done for some deployments. Kaspersky should be able to replicate and address this issue, with a small amount of testing. Normally that testing would occur before the release of a new format.
Also the lesson for end-users is to be suspicious of client states reported by any version of KSC. Always verify them at the client. Even after several years of development and several major version releases, KSC is still not reliable in this regard. This issue is well-documented in the forums and has yet to be addressed by Kaspersky. If you believe the falsely reported states, you can spend many fruitless hours chasing your tail.
For this issue, which was a simple license renewal: 2 weeks to obtain the license (old format no longer available) and about 16 hours of installation, troubleshooting, and repair for the new format. That's terrible by any standard.