Have a problem proving K MN=M
By the K combinator definition
$ (\lambda x y.x) M N $
Parenthesized
$ ((\lambda x. (\lambda y.x)) M) N $
By the principal axiom of lambda calculus
$ (\lambda y.M) N $
Second application of the principal axiom
$ M[y:= N] $ ?
This would give correct result if M is y-free. Apparently there is an error at one of the steps.
When you reduce $(\lambda x.\lambda y.x)M$, the result is $(\lambda y.x)[x:= M]$. This substitution is only defined if$y$ is not free in $M$. Otherwise the $\lambda y$ will need to be $\alpha$-renamed before you can proceed.
Some texts define the substitution function to do this $\alpha$-renaming implicitly, others consider the result of the substitution to be undefined if the variable capture condition is not met.