Hi!
The Red Herring cards are your pile of Clue cards (I avoided calling them Clue cards too often, because I didn't want to give Hasbro a reason to send Pinkertons after me. haha) that you'll deal out to use during the game. Looking at it again, I could try to squeeze that in earlier.
As for step 8, I can also add a little more. But players should spend some time inventing a character (name, pronouns) and reasons why their character know the Clue Characters (Mrs. White, Prof Plum, etc). Then, they should go around the table, like they're at a dinner party, introducing themselves. "I'm Edward (he/him), and Colonel Mustard is my uncle."
It's been a couple of months, so this is probably due for an update. Thank you for checking it out! I hope that makes it clearer, and feel free to reply back with more questions.