No, it’s very clear when Yeon rejected the tie, it broke so they are no longer tied currently.
But what we are probably seeing is that their bond is strong enough to defy fate. We seen it during their first iteration where Yeon’s innocent wish for them to be together led them triggering the Curse of the Red Thread to how easily they managed to pass the Trials and now that Kihoon is still drawn to Yeon despite all of his memories of Yeon was erased.

wait guys im kinda slow can someone tell me if their red string is still connected? and i thought the red string rock said kihoon’s misfortunes will be purged so that means they can be together now right?