Well, that should totally clear up the question of did they use it on those kite flyers at the border wall today by clearly showing it as having been a false statement.
I think you're right, it doesn't look like WP to me. They've used it a lot on Palestinians, but looks like a smoke screen as you mentioned here.
Having said that I don't know the reason why they're firing that on / at civilians. Israel did push millions of them to that border though, so it's their fault.
I just can't imagine these kids are up to some nefarious plan to spy on the IDF or relay intel through cameras on kites or something.