Actually, it should have been a foul ball. Hands are part of the bat.
(Sorry, couldn't resist!)
HBP is always a dead ball. If the batter is swinging, it is a strike. Otherwise, it is umpire judgment..
In the zone - called strike.
Out of the zone - judge any attempt to avoid, which may include protective behavior.
I hope the second call went against the coach who protested the first call.