Questions about Big Sur and [KMFAM] Favorite Actions and Macros

Yes, and no. It does not delete the variable, it deletes the variable from the Popup menus and Preferences and such.

The purpose of the token is to hide variables from the Popup menu that selects Variables.

Yes, it would, and yes it is a pain, but currently that is unlikely any time soon I'm afraid.

The solutions are to use tools like Log and Display Text and such to display the variables as necessary. It is not ideal, but it is what it is. If it is any consultation (probably not) it is how I generally debug Keyboard Maestro since the debugger generally does not show me variables there either.