Correctable Error Question

[UNIgiantslayers]

We had a CE situation last night, unfortunately. This was a sub varsity game that I did with one guy who is really more suited to doing AAU ball (P1), and another guy who's been retired for a while and only does sub varsity stuff these days (P2) but was a pretty knowledgeable guy and seemed from my impression to know what he was doing. Team A is in 2 shot bonus with the 10th foul on team B. We didn't catch that A1 should have gotten 2 free throws, and he missed the front end of a 1 & 1. B came down with the rebound and as they're crossing half court, we realized our error and blew it dead. We awarded 2nd free throw. Here's where it gets hairy. P2 was insistent that A1 shoot the second free throw with the lane cleared, and we give B the ball at POI. P1 wasn't a lot of help here because he knows the basic rules but it seems the more complicated ones are not his strong suit. I said that we shoot it with players on lane as with any 2nd FT. CE rule is a bit ambiguous to me for some reason, it says:

If an error is corrected, play shall be resumed from the point at which it was interrupted to rectify the error, unless it involves awarding a merited free throw(s) and and there has been no change of team possession since the error was made, in which case play shall resume as any free throw attempt(s).

I just want to make sure that I'm interpreting this correctly after looking at the rule. With any other CE, you go to POI except for merited 2nd free throw which you shoot with players on lane. The only confusion I have is that team B had gotten the rebound, so possession changed since the error was made right? Did I incorrectly interpret this rule in game, and P2 was correct with going to POI possession for team B? Had team A gotten the rebound and we blew it dead, then we would have shot with players on the line? I'm not sure why I'm having such a hard time sorting this out in my head, but any help is appreciated.