1) "But MOND (or other modified gravity theories) predict that the "DM" should be found around the visible matter not elsewhere"; so they say. However, this last statement is incorrect. For example, in galaxies the baryons are concentrated at small radii but the putative DM according to MOND is far beyond that. "
It is important to stress the word "around". In Milgroms example the DM is still around the baryons, just far out at a different radius. This is the modification you can get, as long as gravity is still a central force in your theory. However in case of the bullet cluster the DM simply doesn't follow the center of the baryons. It is completely separated at a different place. I think he doesn't get this important point.
2) "As I said we do know that there is some (still) dark matter in clusters and that's what they found."
So Milgrom is admitting that even with MOND one needs some dark matter to explain the results. But with only dark matter we don't need to use MOND. So according to Occams razor the Dark Matter theory wins, because it explains more with less.