You don't need a Corrected 1099-R. The event happened as documented. The first distribution is fine; what the taxpayer did with it is no concern of the issuer of that 1099-R.

You stated this is a covid distribution. Did you use the 8915-E to show the amount Repaid? That form would show the gross.

You cannot get rid of the withholding. That also happened. It is basically the same as any withholding or estimated amount. It doesn't go away, just because the repayment is Gross.