Well, there has to be a stop of exhalation, because the "k" sound is a stop and that is basically the definition of a stop! One thing I want to be pedantic about though: this is not a glottal stop, which is a specific sound made by closing the glottis. "k" denotes a velar stop, which is different.

You can see this stop as a dark area on the spectrogram:

But here's the spectrogram of someone saying sky:

You can see there is the same dark area! Pronouncing a "k" requires cutting off the airstream in the middle of a word also. The duration is about the same; 30 or 40ms in both cases.

If you look further through "aus Kindern werden Leute" in an audio editor you won't see this dark area between "Kindern" and "werden", nor between "werden" and "Leute". These don't have stops between them, so the sound is continuous, even though they're separate words.

It's easy to see the stop in "Leute" - this is almost as complete as that between "aus" and "Kindern". Less obvious are those in "Kindern" and "werden" (both for a letter "d"), but you can also see the dark areas.

I hope this is enough to explain how what you're hearing between some words also occurs within words, and between many words this phenomenon doesn't happen. Phonetics is tricky. It's like learning to draw - at first you don't hear (or see) just what is there, but instead what you know is there. You know that "aus Kindern" or "das Kind" is two separate words, so you hear a break. You know that "Leute" or "sky" is one word, so you don't hear any break.