Proposition 3.2c in Conway's book indeed says that for every idempotent $E$ acting on a Hilbert space $\mathscr{H}$ there holds
$$\mathscr{H} = \mathscr{M}+\mathscr{N} \tag{1}$$
where $\mathscr{M}=\operatorname{ran}E$ and $\mathscr{N}=\operatorname{ker}E $.
If in (1), "$+$" meant orthogonal sum, your reasoning would be correct. But this is not what Conway means. He uses $\oplus$ for orthogonal sum, see section 1.6, or later in the section on projections. The meaning of $+$ here is the vector sum of sets:
$$A+B = \{a+b:a\in A,b\in B\}$$
So, (1) simply says that every element of $\mathscr{H}$ can be written as the sum of two vectors, one in $\mathscr{M}$ and the other in $\mathscr{N}$. This is quite a weak statement; it does not even exclude the possibility that two spaces could overlap, or be the same:
$$\mathscr{H} = \mathscr{H}+\mathscr{H} $$ is a true statement. This is why Conway also puts $\mathscr{M} \cap \mathscr{N} = (0)$ as a part of 3.2c.
Just for the sake of completeness, a simple example: $$\begin{pmatrix} 1 & 0 \\ 1 & 0\end{pmatrix}$$
in two-dimensional space, like $\mathbb R^2$. This is an idempotent operator; the kernel is the vertical axis, the range is the diagonal.