My gauge was 13 stitches over 4 inches, 3.25 stitches per inch. I had cast on 111 stitches for the small which was to fit up to 40 inches. Do the math: 111/3.25=34. The circumference of knitting was 34 inches, that is smaller then my bust! If I had perfect gauge of 14 stitches over 4 inches (3.5 stitches/per inches) the math would be: 111/3.5= 31.7 inches, even smaller.
There is no way this size is going to go over my arms and have slack. I held my arms to my side and had a friend take a bust measurement, including my arms, over 40 inches. I looked closely at the photograph on the pattern. The Capelet Cowl clearly reaches below the bust and has positive ease. I decided this is one of the situations when the photograph does not match the dimensions of the garment.
I ripped out the six inches I had knit and cast on again. I will do the first four inches following the pattern. After the Set up Round, I will do one repeat of the Drop Stitch Pattern as written (no decreases in Round 4) and then continue with 1st Drop Stitch Pattern.