David,
Sorry I was away from the computer for a day.
Yes, you are correct, some test kits will still pick up ammonia after dosing with Prime, since it only detoxifies the ammonia and does not remove it.
Hagen makes a reagent that will read correctly (Nutrafin I think is the name on the box). If you dosed according to the instructions it likely detoxified all of your ammonia. The airstone is not a bad idea for the first hour or two after dosing, but after that, there is no need to keep it if you have good water movement. The depletion of oxygen from Prime is immediate and does not last very long.
Sorry that your Damsel did not make it, but 10 gallons is very small for the amount of fish you have. Keep an eye on the Flame angel, it could be that it is not MI, and instead a bacterial / or other infection. I would not have expected MI to have attached if you have been clear of spots for some time.
The Flame is very cramped in 10 gallons. I don't want to rain on your parade, because you are doing the right thin with hypo / QT, but the 10 gallon tank is no doubt causing enough stress on your fish load to make it very difficult. Stress by itself KILLS fish, without an illness going on. With them battling MI, and in a 10 gallon QT...you have your hands full.
Keep a close eye, and make sure they are eating well.
The reduction of toxic ammonia should help. What is your pH, and nitrite readings? Also what is your water temp?
SV