Is this typical protocol and how meetings are conducted?
There is no protocol here. Even if you had a formal moderation, nobody keeps someone from saying stuff that is obviously rhetoric.
Communication is hard. Entire coaching industries exist where people go around and try to teach us how to lead productive conversations. There are so many archetypes of speakers, and only very few of them are conductive to a great meeting. Not to mention the fact that without the body language (and, often, without accompanying video) things can get complicated fast.
While I certainly see how someone (including me) might be annoyed by the tip-toeing around these issues (i.e., correcting someone's mistakes), we have to acknowledge that it is definitely a common trait in people that if someone point blank tells them that they just said something wrong, there is a high chance that they either wall themselves in (shut up), or go into attack mode. Both of which are good ways to quickly end a useful discussion.
So the effect is that people err more on the "tip-toeing" side. Communication coaches will regularly teach that it is a great idea to acknowledge what the other said, to make sure that you understand them, that it's not their fault for not knowing better (don't say that verbatim, of course) and so on. After that, you can try to modify their statement.
For me personally, it depends. If there is any way that I can respond in a way which 100% clearly is not going to annoy them, I will. For example, if they say something that is wrong purely factually because they cannot have the relevant information, I will just jump in and add the information to the discussion. I still won't say "that's wrong because some fact", but "some fact, therefore I think we need to rethink this" or something along those lines. If they say something that's wrong but more of an opinion/preference, then it gets a little complicated, and it will be hard to give an overarching recipe of what to do, without tip-toeing a bit.
Whatever you do, giving a verbatim "you are 100% correct but blabla" is in any case not a good idea and an easy to spot bluff. But something like "I see where you're coming from" or "I agree that it may seem like that" or "that seems plausible, but..." isn't the worst you might do. Depending a lot on convention and culture, of course. In my country (Germany) we are often quite direct and "frontal".