The two versions of Kast-O-Lite with which I am most familiar are the Kast-O-Lite 26 and Kast-O-Lite 30.
In regards to dealing with flux, both will work fine for your welding forge.
The differences between the two are the densities, which affects durability (temperature rating) and thermal properties (insulation).
The 26 has a 2600 F service rating, while the 30 has a 3000 F temp rating. So the 30 is more durable under high heat because it is denser.
But the tradeoff is that density (which contributes to durability) sacrifices insulative qualities.
Lightweight refractories are better insulators, contributing to increased efficiency.
For a forge specifically set up to handle forge welding, the 26 would be my choice.
The 30 is more suitable to applications where the refractory must serve as a hotface. (A hotface is the part of the wall subjected to direct impingement by the heat source.)
So if you're sensible about your burner placement, the 26 is fine. At least it has been for me.
As the others have mentioned, I highly recommend placing some type of IR coating over your refractory.
I have nothing but wonderful things to say about ITC 100. It is the only IR coating I have used, so I can't give you a comparison.
But whichever brand you choose, the point is that they are (or should be) specifically formulated to reflect. They're not insulators per se.
If you apply an IR coating over a castable refractory, make absolutely certain that your castable is cured first.
Spalling is no fun; the possibility of a steam explosion is an even worse case scenario.
Rob