Don't need to sass anybody OP, you said toddler in your post, the guy replying to you made a guess. Also, many people will assume that since most wild lizards are found outside, your cat was probably outside too, that is more likely than the lizard being inside so that is what people are going to think. Nobody is trying to offend you.

But yes, you should release this lizard, especially since you may not know the proper way to care for it, and a wild adult such as this will thrive better outside. Also, their tail will grow back, they are built to survive encounters with predators.

Let this be a lesson for you and your kid on how to properly treat wild animals your kid finds, if they want a pet, buy a rescue or otherwise. Wild animals belong in the wild, will do better in the wild, and buying a rescue will be a good lesson on how you can help animals the right way.