You are correct but there is no specific case play that covers your situation. Rule 3-3-1c covers substitutions during free throws. The substitute meets those requirements. The ball became live with the first free throw as you said and the sub had properly reported to the table before the 2nd free throw. The time-out is no longer relevant.
Ask your partner this, in this situation would he deny a sub who reported to the table after the first free throw ended and before the 2nd free throw was administered?
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A-hole formerly known as BNR
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