Aside from the funeral at the beginning of this episode, Max doesn't encounter any members of KAOS in this episode.
Samuels: It's Instanbul not Constantinople.
While playing a ping pong match in Instanbul both Max and Agent Samuels start quoting lines from the song Instanbul (Not Constantinople). Originally a 1953 hit record for the singing group The Four Lads and the song once again became a hit in 1989 with a cover version by They Might Be Giants.
The name of the third spy network, Atrocities/Cruelties/Brutalities (ACB) is a reference to the American Broadcasting Company (ABC), which at the time was a distant third to NBC and CBS.
The title and plot are obvious allusions to the classic spy series "I Spy" where Robert Culp plays tennis pro "Kelly Robinson" and Bill Cosby plays his trainer "Alexander Scott" who use their professions as covers for their work as spies for the government. Not so coincidentally, Culp has a cameo in this episode as the bartender who samples Max's drinks.