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My answer: no. The real answser: Table Variance. With the way many munchkins read the rules, you only need your hand empty while using the feat you get the bonus. This seems wildly against the intent of needing a free hand in the first place. The rules assume common sense. But you'll need to talk to your GM, You wont find an answer this board agrees on.
...you are a kineticist. You don't need to waste time with this. There is no reason for you to do dex to damage, since your strength stat has already been removed. You have two stats to worry about- dex and con. Two of the best stats. Even if you wanted to do dex to damage, you would still probably have high con anyway, since it is used for many of the saving throws on infusions, as well as generally raising your health so you can grab more burn for overflow without becoming glass. If your dex and con aren't fairly close together, then you are likely doing something that is at least a bit off.
These kinds of questions are the reason why slashing grace went way overboard to make sure no one uses TWF with it. The devs got paranoid. This feat was just never designed with such concerns in mind, since the devs had thought the 'no weapons in the offhand' line would have covered everything, vastly underestimating how far people trying to stretch things. So of course the feat is as clear as mud when reading it for answers for things it was never designed to do.
I always hated dervish dance TWF threads, so I never bothered sticking around to the end. Just look through the 'unarmed dervish dance TWF'- those threads probably have your answer.
Really, OP?
I think this is most likely a 'I want to play an annihiltator, but I don't want to give up my utility powers' thing. Along with the normal dervish dance shenanigans.