>OF military power
You heard correctly.
Transition OF military power from one CiC to the next.
>Is the capital seen as a separate country at this point?
The District of Columbia is (and has been) an International City-State.
That is, it is foreign to all the several states.
Just like Vatican City is foreign to Italy.
Exactly like the City of London is foreign to Britain.
United States is a for-profit foreign owned corporation that is NOT supposed to be operating beyond the one-mile square of DC.
Oh, and it is bankrupt.
Both versions of the corporation are bankrupt.
Three.
Constitution for the united States of America (Federal Republic, Land Jurisdiction)
Constitution of the United States of America (British Territorial government services, Water Jurisdiction)
Constitution of the United States (Papal Municipal government services, Air Jurisdiction)