If Edward VIII had children ...

No that’s exactly what the law says; any right title or interest in the succession due Edward is removed from him and all successors. If they have a right etc. through someone else, it is not removed. It does not forbid them from being king/queen. It just says they can’t claim to be monarch because they are descended form Eddy.

That’s not what it says, though. It says that none of his descendants shall “have any right, title or interest in or to the succession to the Throne.”