If a graph $G$ is decomposed into cycles and paths, then each cycle contributes $0$ or $2$ to the degree of each vertex of $G$, and each path contributes $0$ or $2$ to the degree of each vertex except its endpoints. Therefore, a graph which can be decomposed into two paths and a number of cycles can have at most four vertices of odd degree, namely the endpoints of the paths. Since every vertex of $K_n$ has odd degree when $n$ is even, it follows that the statement is false for all even $n\gt4$.
On the other hand, the statement is easily seen to be true for $n=3,4,5,7$. For instance, $K_7$ can be decomposed into $5$ cycles of lengths $3,3,4,5,6$ as follows. Call the vertices $A,B,C,D,E,F,G$; then the cycles are $ABDA$, $ACEA$, $AFCGA$, $BEGDFB$, $BCDEFGB$. (Of course you can
break one of the $3$-cycles into a path of length $1$ and a path of length $2$.)
In fact, the statement seems to be true for all odd $n\ge3$. It follows from one of the general results of Darryn Bryant, Daniel Horsley, and William Pettersson in their 182-page paper Decomposition of complete graphs into cycles of arbitrary lengths that for odd $n\ge3$ the complete graph $K_n$ can be decomposed into a cycle of length $3$ and $n-3$ additional cycles of lengths $3,4,\dots,n-1$. Quoting their abstract:
We show that the complete graph on $n$ vertices can be decomposed into $t$ cycles of specified lengths $m_1,\dots,m_t$ if and only if $n$ is odd, $3\le m_i\le n$ for $i=1,\dots,t$, and $m_1+\cdots+m_t=\binom n2$.
We also show that the complete graph on $n$ vertices can be decomposed into a perfect matching and $t$ cycles of specified lengths $m_1,\dots,m_t$ if and only if $n$ is even, $3\le m_i\le n$ for $i=1,\dots,t$, and $m_1+\dots+m_t=\binom n2-\frac n2$.
I have not studied the proofs, which are long and complicated with many cases.