You have a repeater option.
The wizard by default gives you mouse and keyboard repeating on one key.
I've modified it to be two keys, one for each.
But at the heart it's the same thing.
When repeater is on, everything is broadcast to all clients.
However, Keymaps still supercede key presses, if you have a key configured to do something.

When repeater is off, Keymaps can be on or off.
The default setting is repeater off but keymaps on.
While Keymaps are on, anything you have set will broadcast to the targets you have selected.
Each Keymap has a trigger or hotkey.
Each has an output (per Step) and a target which the output applies to.
A single step means the same thing happens on each press.
Multiple steps means different things can happen on each step.

For IS to function the same as Keyclone, while Pause is enabled...
You'd need to have both Keymaps and Repeater off.
If you press your Repeater or Keymap hotkey, you should get the message.
Either "Keymaps Enabled" or "Keymaps Disabled". Or the same for Repeater.
If you're not getting the message, then hotkey is wrong.

In Keymaps - Control, the Keymap you want is "Activate Maps".
This controls when other Keymaps are enabled or disabled.
If you click on this, it will list the Hotkey on the right.
Shift + Alt + M is not necessarily the hotkey, it could have been changed.