Help understanding Coralito's signature

The part that says "Your Critical Strikes do not deal extra damage" does that mean hits or ailments too?

But it also gives Perfect Agony. I sorta want to make sure that ailments still do extra damage from crits otherwise it would seem stupid to have Perfect Agony on the flask at all.

I would feel more convinced by the wording if it said "Your hits from Critical Strike do not deal extra damage" A bit like the wording on the Perfect agony node - if in fact this is how it works.