Yes, calculating HP is difficult for creatures because the formula in the core rules is meant strickly for PCs/NPCs
In The Encountered, however, you have to also consider the creature’s size relative to that of a normal Human, and so you need to start by adjusting the base formula by using the multipliers shown in Figure 9.2. With this, the Kraken is considered Colossal, so would get +75% HP, so base is 181, and adjusted for size is 316 (which does happen to fit for the “average” for that category as shown below).
Section 9.4 goes over each Category and gives the ranges that you should encounter, so a Kraken (a Category 9 creature) should have between 200 and 275 HP - so it’s spot on here (yet Figure 10.3 shows that a Category 9 creature should have an average of 315 HP) by that rating.
So you have to kind of massage your creatures, so to speak, to get them to an appropriate level - personally, I would suggest using the formula first, then see how it compares with the ranges in Section 9.4 - if it is within the range, press on, but if not, adjust accordingly - try by size first, then do what you need to do to tweak the value to where it should be…
as always, ymmv
