Enter kitchen, light off, turn on coffee grinder, power reporting works and turns on Kitchen light. Leave kitchen, wait a few minutes, light still on. What am i missing here?
Is it possible the light reported that it was on to Hubitat when it was actually off, so it got captured (and, in turn, restored) "incorrectly"? You can verify the reported state by looking at the device detail page for Kitchen and looking at "Current States" towards the top. The "switch" value should be "on" or "off" and update in real time according to the actual device state. If this is wrong, the rule will also get the wrong states.
Just one guess, among others. 
Turning on action logging for this rule may also show you a bit more, though I'm not sure that gives you insight into exactly what is captured/restored. (The Application State from the App Status page will give you some idea of what was captured, but making sure the device reports correctly is where I'd start.)
