Let $E:\{0,1\}^n \times \{0,1\}^n \to \{0,1\}^n$ be a good PRP and consider blockcipher $\widetilde{E}$ defined as follows
$$\widetilde{E}(K,X) = \begin{cases}K & \text{if } X=K \\ E(K,K ) & \text{if } X = E^{-1}(K,K)\\ E(K,X) & \text{otherwise}\end{cases}$$
Black used this to show that Matyas-Meyer-Oseas construction which is proven in the ideal-cipher-model can fail in the standard model, i.e. it will fail if we instantiate it with $\widetilde{E}$;
So $\widetilde{E}$ is the same block cipher as $E$ with one change: we now have the invariant that $E(K, K)= K$ for all $K \in \{0, 1\}^n$. Clearly $\widetilde{E}$ is a good PRP since have $E$ was: for a randomly chosen key $K, \widetilde{E}(K,\cdot)$ is computationally indistinguishable from a random permutation.
Is the claim computationally indistinguishable from a random permutation true?
We can say that for a fixed key $K$, $\widetilde{E}$ we will always output $K$ if $ K = X$
The probability of getting a single point is fixed from all permutations of $k$ elements is $\frac{(k-1)!}{k!} = \dfrac{1}{k}$.
If we turn this into permutations generated by the $n$-bit block cipher. Then we have $\dfrac{1}{2^n}$. Therefore the permutations of $\widetilde{E}$ is distinguishable and $\widetilde{E}$ cannot be a good PRP.
Any missing point?
Could one provide a formal proof for this an example?