IAU Dwarf planet definition Point 2.b - is not a satellite
Or am I missing something here?


Yes. You are missing the word "Sun". The IAU did not want to tackle the problem of how to categorize exoplanets. There are only eight planets in the entire universe, plus a good number of (five and counting) dwarf planets. An expoplanet orbiting Alpha Centauri is not a planet or a dwarf planet, per the IAU definition. Some hypothesize that the early solar system contained five giant planets, but one of them was expelled. That rogue giant planet, if it exists, is not a planet per the IAU definition.

You are treating the word "orbit" as if it's a mutually exclusive term. It's not. The Earth's Moon, for example, orbits the Earth and it orbits the Sun. But since the Moon is a satellite of the Earth, it's not a planet or a dwarf planet. Side note: the concept of what distinguishes a "satellite" from a non-satellite is not defined.