Yes, your partners goofed the free throw. A good pre-game helps with the T and C getting this call correct. The L shouldn't be looking there at all. Since the whistle was sounded without possession, you should have used the arrow.
In the second situation, the rule is that when the official recognizes that the teams are going the wrong direction they switch them and all points scored, fouls committed, and time consumed stand (4.5.4). However, since you said this game was only lightly organized, like Dan said, it is not a big deal and you probably don't need to switch them. It is probably easier just to ask the one sub to sit on the other bench!
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