We are dealt 13 cards from a standard 52 card deck. If $A$ is the event where we are dealt at least two kings and $B$ is the event where we are dealt at least 3 kings, we want to know $P(B|A)$. I believe the correct way to do this is to calculate the probability of being dealt a hand with each number of kings separately as follows: $\displaystyle \frac{{4 \choose 3}{48 \choose 10} + {4 \choose 4}{48 \choose 9}}{{4 \choose 2}{48 \choose 11} + {4 \choose 3}{48 \choose 10} + {4 \choose 4}{48 \choose 9}} \approx .17$.
However, it also makes sense to me that if we know we have been dealt 2 kings, it doesn't matter where in our hand they are, the $P(B|A)$ should be the same as the probability of getting dealt either 1 or 2 kings in an 11 card hand from a 50 card deck with two kings in it as follows: $\displaystyle \frac{{2 \choose 1}{48 \choose 10} + {2 \choose 2}{48 \choose 9}}{{50 \choose 11}} \approx .4$
(Or compute $1-p$, where $p$ is the probability of getting no kings in an 11 card hand from a deck with 50 cards and only 2 kings.)
What is the issue with my logic here?
You're solving 2 different problems. In the above Venn Diagram,
Your First Probability is $\frac{A}{A+B+C}$
Your Second Probability is $\frac{A}{A+B}$
To understand better, I'll recommend you to solve the following version of your problem :