No, the official is incorrect. This has to be caught prior to the ball becoming live to start the game or the player must exit the game and then re-enter. During the intermission between quarters the five players are still players. No substitution has taken place.
RULE 10, SECTION 3 PLAYER TECHNICAL
A player shall not:
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ART. 2 . . . W ear an illegal number or an illegal shirt or illegal pants/skirt.
PENALTY Art. 2) Each violation is penalized one time if discovered prior to ball becoming live for each designated starter and each substitute who enters.
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