DS 260 is basically a formality. KCC will only forward your case to USCIS and USCIS will be doing most of your work. Fill in DS 260 and indicate that you will be doing adjustment of status. The paperwork for AOS is intense with USCIS so start preparing everything ASAP so you have the packet ready to go when your priority date comes. Keep checking the visa bulletin. DV winners also get a couple weeks headstart since you can apply almost a month before your priority date is current.

For now....fill in DS 260. Start preparing packet for USCIS. If it does not get processed by the deadline, you lose your visa, which is very rare because USCIS puts DV cases in the front of the line but its never bad to be more proactive. Use every day in your favor to provide USCIS as much time as you can possibly provide. Hoping your case number is not high, the higher it is the later in the fiscal year you can send in your packet. Remember you can only send the packet once your case is current but you can have the packet prepped in advance.