Spellthief's edge does not work with the AOE effect of Kayles E
As simple as the title is, the E doesnt proc the effect of spellthief's, despite dealing damage to the surrounding champions.
its easily replicate-able, just pick kayle, get spellthief's, hit a minion or a champ with E active, and watch how you either get no proc, or only the proc of the autoattack on the champion you are directly hitting.