It bans the import, but not sale of models the FCC has previously approved.
Your originally quoted text explicitly disagrees with you: "This update to the Covered List does not prohibit the import, sale, or use of any existing device models the FCC previously authorized."
Your originally quoted text explicitly disagrees with you: "This update to the Covered List does not prohibit the import, sale, or use of any existing device models the FCC previously authorized."