The GA was correct. If you buy the "flexibility" package on aa.com while making your purchase, then you get free standby, Group 1 boarding, and a $75 change fee discount.

The $10 Group 1 kiosk option that is available when checking in at the kiosk is just that - a $10 charge so that you can board with Group 1. This isn't related to the flexibility package.

Edit: If you think about it, it makes perfect sense. If someone wanted to get on an earlier flight that's wide open, why would he pay the $50 CFC fee when he could just purchase the $10 Group 1 package at the kiosk and then standby for free?