That sounds about right. The approach I'm working on won't allow you to embed runnable code in your docs. Instead, it requires you to write your documentation in Kotlin e.g. using a Markdown DSL where source code from the codebase can be included in the output. I'm working on a separate project to programmatically generate file trees and Docusaurus doc sites in code.
I'm not aware of anything exactly like Livebook in the Kotlin ecosystem but you might be interested in kotlinx-knit which takers a more incremental approach to executable documentation:
https://github.com/Kotlin/kotlinx-knit
Neither of these approaches will result in interactive documentation.