Dash recalls that they re-recorded "Tequila" and being told that the new recording was intended to replace the hit version for legal reasons.
Perhaps this is the source of the confusion.
No information was given as to when the re-recording took place, or whether it was ever released.
In any event, the Wikipedia page for the song leaves no doubt that the facts are as you say.
Love Glen Campbell and Seals and Crofts as well. They bring a warm and happy vibe to me...when I was in a better time and place.