I also agree in that length between nodes -I use to call it segment length- with K=1 may be used when all the specs for direct analysis are applied. I also agree with WillisV that the safe approach is using the actual conditions of bracing to determine the length between braces to determine flexural capacity.
However I find suspicious AISC does not state explicitly use actual length between braces for flexural strength determination with the same clarity that use K=1 (even for this, you can use segment length should be clarified) in direct analysis context.
It is surmised that the inclusion of P-Deltas, initial imperfections, and material stiffness adjustment reveal the augmented solicitations that stability requirements may ask for.
This means that the structure at the stable final status at the factored level is showing all the augmented values of both XYZ displacements and rotations about such axes, upon which no further displacement or rotation may be attained under the set of standing factored loads, stability requirements included.
This SHOULD mean that in the same way that we can use K=1 and segment length for the checks since the nodes are linearly fixed at the final status and showing the stability enlarged moments at ends of segments, the nodes are to be also rotationally fixed and showing the enlarged moments and rotations at such ends, and we SHOULD be able to resource to in-segment behaviour, i.e., again, segment length, to ascertain the expected flexural capacity of some member that will have such (final, stable) solicitations at ends of segments.
Since however what WillisV says may very well be the current understanding of the issue for flexural strength in direct analysis context -in spite of the faible clarity about the matter in the code, simply letting the design fall in the ordinary statement of Lb, without any further precision- I will try to find document or tutorial or whatever preferably within AISC docs to clear the actual standing.