Well, in the second case, when $K$ is on the arc different from the arc $ABC$ $$AM = MB - BC$$ so definitely $AM = MB - BC < MB + BC$
And by the way, this is a very general problem, these values $5, 4, 2$ play no role in the proof.
Let $D$ be chosen on the line $AB$ so that $BD = BC$ and $B$ is inside the segment $AD$. Then triangle $BCD$ is isosceles. Since $K$ is the midpoint of the arc $ABC$, the line $BK$ is the exterior angle bisector of angle $\angle \, ABC$ and is thus the (interior) angle bisector of angle $\angle \, CBD$. As an angle bisector of the isosceles triangle $BCD$, the line $BK$ is also the orthogonal bisector of edge $CD$. Therefore, $KC = KD$. As mentioned before, $K$ is the midpoint of arc $ABC$ so $KA = KC$. Hence, $KA = KC = KD$ and thus triangle $ADK$ is isosceles. Then $KM$ is its altitude, so it is also the orthogonal bisector of $AD$. Hence, $AM = MD$. However, by construction $BC = BD$ so
$$AM = MD = MB + BD = MB + BC$$

Now let us take a look at point $K'$ and its orthogonal projection $M'$ on $AB$. Analogously to the previous case, let $D'$ be chosen on the line $AB$ so that $BD' = BC$ and $D'$ is inside the segment $AB$. Then triangle $BCD'$ is isosceles. Since $K'$ is the midpoint of the arc $AC$, not containing $B$, the line $BK'$ is the angle bisector of angle $\angle \, ABC$. As an angle bisector of the isosceles triangle $BCD'$, the line $BK'$ is also the orthogonal bisector of edge $CD'$. Therefore, $K'C = K'D'$. As mentioned before, $K'$ is the midpoint of arc $AC$, so $K'A = K'C$. Hence, $K'A = K'C = K'D'$ and thus triangle $AD'K'$ is isosceles. Then $K'M'$ is its altitude, so it is also the orthogonal bisector of $AD'$. Hence, $AM' = M'D'$. However, by construction $BC = BD'$ so
$$AM' = M'D' = M'B - BD' = M'B - BC$$