I lost you guys at #26.
If the Vls is above VFE(next) and A/THR engaged,
+ you select man speed sel VFEnext -5
+ ATH/R observes Vls
And nothing else happens. There will be no decrease of Vls as the flaps extend because they will not. You are still stuck at the original Vls that is above your VFEnext.
Hence the call for ATHR off, so that you can reduce into the Vls zone in order to deploy the flaps next notch. Only then observe the Vls dropping which creates the room to re-engage the ATHR.