Chris
In fact the KE04 user's manual informs that the peripheral mode has priority over GPIO mode, and also that analog functions have priority over peripheral modes but doesn't actually state anything about priorities when multiple peripherals are on the same pin.
KE02 however explicitly states the priority scheme:


I assumed all KE and KEA parts used the same priority control but maybe they can collide on the KE04(?).
However if one simply avoids trying to use multiple peripherals on a single pin it doesn't really matter whether it automates the selection or not.
Since the user's manual doesn't specifically state it this would indeed be the strategy to follow until it is possibly proven by practical tests.
Regards
Mark