I would venture to guess the KJV had it wrong, and here's why. Daniel has recorded the words of a pagan king. He does not know the God of Israel at that time, so for him to see this miracle, three Hebrews bound hand and foot, tossed into a fiery pit, so fiery the flames consumed those who tossed those Israelites into that pit, and he sees Someone with them, and they are walking around unbound, and the flames having no effect on them, neither their clothing.
After they come out, he proclaims their God to be the God his ppl, the Babylonians, would worship. However, in Daniel 4, Daniel gives him a stern warning that when he took credit for what God gave him, his kingdom, he'd lose his mind and go stark-raving mad. It was only after he looked upwards that God restored his mind unto him and he said, "At the end of that time, I, Nebuchadnezzar, raised my eyes toward heaven, and my sanity was restored. Then I praised the Most High; I honored and glorified him who lives forever. His dominion is an eternal dominion; his kingdom endures from generation to generation.All the peoples of the earth are regarded as nothing. He does as he pleases with the powers of heaven and the peoples of the earth. No one can hold back his hand or say to him: “What have you done?”At the same time that my sanity was restored, my honor and splendor were returned to me for the glory of my kingdom. My advisers and nobles sought me out, and I was restored to my throne and became even greater than before. Now I, Nebuchadnezzar, praise and exalt and glorify the King of heaven, because everything he does is right and all his ways are just. And those who walk in pride he is able to humble."[vss 34-37]
So, to him, at the time of the fiery furnace, Jesus, or whoever was there with them(I've read where it was an angel of the Lord, not saying I agree with that, but just to show there are varying views), he did believe in gods, just not the God of Israel. So, to see just a miracle, he expressed this the best he could with the info he had.