Good diagram. I think, from memory, it being too dark and cold to visit shed right now, that the SC3 standard jaw instructions say to use a plain sided tenon not a dovetail. Chucks and jaws vary. The jaws are designed to grip straight sides. For a recessed grip you do cut a dovetail.
Best read the instructions that will have come with the chuck kit.
Take care with the jaw fixing screws, they roll and bounce a very long way if you drop them. I keep my jaws etc in an old square biscuit tin and use the upturned lid on the bench as a worksurface for jaw fitting and removing. The lip prevents disasters.
I found it all took a long time when I started, but after a few goes it gets quick and intuitive. I keep a table pinned up on the wall with the min and max tenon sizes for contraction and expansion, saves having to feret around for the spec or think too hard.