It counts? What is your source?
Yes, clearly any rifle or shotgun can be fired in some capacity when a stock is taken off or it is otherwise reduced to less then 26" OAL. Usually you need a screwdriver, or some sort of tool to take the stock off.
With the knoxx, losing that extra little inch that helps puts you over the edge at 27 inches is an unnecessary risk. For an LEO, reducing the OAL on a knoxx equipped Grizz 8.5 to barely 26" is no more complicated then pushing a button on a folding stock. (which on the 8.5 Grizz, would also land you in hot water as per the CCC)
At the end of the day, do what you like, but you may pay the consequences.
From the CCC:
Restricted firearm:
(c) a firearm that is designed or adapted to be fired when reduced to a length of less than 660 mm by folding, telescoping or otherwise, or
Prohib firearm:
(b) a firearm that is adapted from a rifle or shotgun, whether by sawing, cutting or any other alteration, and that, as so adapted,
(i) is less than 660 mm in length, or(ii) is 660 mm or greater in length and has a barrel less than 457 mm in length,