There’s a lot to be said for when you knowingly screw up to just admit it, swallow your pride and slink off into the background.
Some humility can stop something escalating as seems to be the case here.
(That said, if you’re 100% confident you’re correct and the police are wrong, which does happen, then politely stand your ground, show the evidence or request to speak to someone more senior).
Yes. DJI have their own often wrong database, they don’t use NOTAMs. Go to dronescene.co.uk where you can turn on the DJI layer and see where they restrict.
My example of how crap they are is Heysham Port where there’s 2 nuclear power stations. No fly zone within a 2 mile radius. DJI will let you fly over the harbour water, yards from the power stations.
I can stand to the side of a particular path near me and get no warning…Soon as I cross that path about 7 feet wide I get a DJI warning and it’s all CTR area.