8 ppm ammonia is the ~ inhibition point for the first set of nitrifying bacteria. Your going to see nitrates and nitrites still appear cause theoretically 8 ppm ammonia isn't going to be even distributed throughout the entire system at all times. Some small pockets here and there will allow some break down of ammonia to nitrite to nitrate.
You also have an issue with too high nitrite. When nitrite goes above 5 ppm, you get the same issue where you get inhibition of the bacteria that consumes nitrite.
Too much initial ammonia is a big issue. I recommend most people to do less than 2 ppm ammonia on the first dosage to avoid issues. You can crank up the amount of ammonia later on after you get the first round of ammonia to zero out but you can't do a heavy round on the start.
If you can see 8 ppm ammonia on the API test kit, you probably have far more ammonia than you think. Generally, you aren't suppose to dose and test still you can see the ammonia on your test kits. Your suppose to use a known concentration, dose it, and observe for nitrite and nitrate appearance. You can calculate going backwards from the amount of nitrate presence to determine how much ammonia you possibly had at the start.
Like others are recommending, doing a water change to dilute the ammonia out will set you back in order.
For your question on if your bacteria will survive a 100% water change, it can if you have substrate and you don't let the substrate come to a complete dry. Just drain your system quickly and refill it back up.