Step 1: Check statement (A).
\[
2CuSO_4 + 4KI \rightarrow 2CuI + I_2 + 2K_2SO_4
\]
So iodine is produced \(\Rightarrow\) (A) correct.
Step 2: Check statement (C).
In alkaline medium with reducing sugar (glucose), \(Cu^{2+}\) reduces to \(Cu_2O\) (brick red).
So (C) correct.
Step 3: Check statement (D).
On heating \(CuSO_4\):
\[
CuSO_4 \xrightarrow{\Delta} CuO + SO_3
\]
So (D) correct.
Step 4: Check statement (B).
KCl does not reduce \(Cu^{2+}\) to \(Cu^{+}\) to form \(Cu_2Cl_2\).
So statement (B) is incorrect.
Final Answer:
\[
\boxed{\text{(B) is not correct}}
\]