The analysis is getting bogged down on whether Reed followed proper procedure. Apparently he did. What makes no sense is how he and a rules official found an indentation in the ground that didn’t exist.
I believe that Reed, as he has done before, lied to gain an advantage. (see the sand incident). As for the official, I suspect his instinct is to the err in favor of the player, and was either lazy or intimidated. But in this world where there are seemingly no longer any facts, it is a fact that a ball that fell from 2 feet into thick rough did not plug. As Reed said, that would be impossible.