[Not the way I read it.
"However, if a player had raised" Yes, the all-in was a raise "and the raise had not yet been called," No, it had not been called at the time the cards were mucked "the raise will be returned to the player" No, it wasn't... all-in man was forced to forfiet his raise.
Therefore, under this rule the decision was incorrect.
My understanding is that the 'raise' was returned - the guy only had to pay to call the other players bet.
Correct