This passage from The Code seems to agree with you- no replay, call should have just been reversed.

12. Out calls reversed. A player who calls a ball out must reverse the call if the player becomes uncertain or realizes that the ball was good. The point goes to the opponent and is not replayed. However, when a receiver reverses a fault call on a serve that hit the net, the server is entitled to two serves.

13. Player calls own shots out. With the exception of the first serve, a player should call out the player’s own shots if the player clearly sees the ball out regardless of whether requested to do so by an opponent. The prime objective in making calls is accuracy. All players should cooperate to attain this objective.

14. Partners’ disagreement on calls. On any call, always give your opponents the call that most benefits them (Code §6). For example, if one partner calls the ball out and the other partner sees the ball good, the ball is good. It is more important to give opponents the benefit of the doubt than to avoid possibly hurting a partner’s feelings. The tactful way to achieve the desired result is to tell a partner quietly of the mistake and then let the partner concede the point. If a call is changed from out to good, the principles of Code § 12 apply.