No it’s knocked out in the tackle
According to the very badly worded rule above, the player in possession still has to elect to incorrectly dispose of the ball. Again, makes no sense, if the ball is knocked out in the tackle then the player in possession has not elected to do anything as it was not their choice to have the ball knocked out in the tackle.
What a stupid rule, very very badly written. If I was interpreting that I doubt I could ever give a holding the ball free when a player is tackled, it calls for contradictory events to occur or at the very least contradictory intent on the part of the player in possession.
DS