Automatic Strike/Penalty Strike NFHS

[Blue37]

At our local meeting yesterday, the actions of the batter were discussed. One area of disagreement arose. The situation presented was "The batter requests time and steps out of the box with one foot. The umpire does not grant time and the pitcher delivers a legal pitch which is not in the strike zone." Most of the group felt the pitch was a ball since it was not in the strike zone. Some of us felt otherwise, based on 6-2-4d-1. We felt it should be an automatic strike, regardless of location.

My interpretation of that section is summarized as follows: (I could not figure out how to display this as a table.)
Batter’s Action - Pitcher’s Action - Result
1. Steps out with one foot - Stops - Do-Over
2. Steps out with both feet - Stops - Penalty strike for leaving box with both feet.
3. Holds up hand, stays in box - Stops - Do-Over
4. Steps out with one foot - Delivers legal pitch - Automatic strike regardless of location.
5. Steps out with both feet - Delivers legal pitch - Automatic strike regardless of location and penalty strike for leaving box with both feet.
6. Holds up hand, stays in box - Delivers legal pitch - Automatic strike regardless of location.

Am I misreading the rule?