Your understanding is correct. Under Cal. Bus. & Prof. Code 16600, all noncompete agreements entered into by an employee whose contract is based upon employment within the territorial boundaries of California are void as against public policy.
California courts will enforce a noncompete against an employee who begins employment in a different state jurisdiction, and who then moves to California and finds new employment that conflicts with the original agreement. However, if you were a resident of California at the time you entered into your original contract, or you are now a resident of California, or if your employment was intended to be based in California, even if you were or are a resident of a different state jurisdiction, then it doesn't matter what the severance package states, concerning the noncompete, because the noncompete is unenforceable against you.
Hope this helps.
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