Can I set up my print book with Lightning Source and (KDP) Kindle Direct Publishing? YES! Just as you were able to do in the past with Create Space.
Lightning Source is non-exclusive. You can set up your book on your Lightning Source account and sell it through our global distribution network, plus you can use other printers, distributors, fulfillment services, or any companies you choose to work with.
With the KDP program, it is our understanding, you can use only Amazon or, if you select their Expanded Distribution program, "your book's ISBN must not have been submitted for distribution through another service" (such as Lightning Source) and your book must be available on Amazon.
If you want to use both Lightning Source and Amazon KDP, you can do that. Just be sure you don’t select the Expanded Distribution service they offer.