Dullcote has never reacted badly with any paint that I've used, water-based or otherwise. In fact, the water-based acrylics are the most inert, I believe, once dry. But, I haven't used all the paint in the world.
I'm sure that there are exceptions, but I have found Dullcote to be fairly foolproof - just don't apply it too thickly at once - it turns milky, and that's just bad painting, anyway.
I have tried to "dull down" some paints on some surfaces, and never got it there, even with Dullcote. It would still dry as a satin. Didn't ruin anything; it just never got flat, regardless of the number of coats. I guess that the D'cote was reacting a bit with the other paint (not water-based, BTW), even after several days curing time. That's my only "complaint".
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However - I want to know where you got that "krypton" paint!