Standing on First still awarded two bases.

[RADcatchers]

Here is the answer from GROK on X/Twitter:
According to NFHS (National Federation of State High School Associations) softball rules, if an overthrow by an infielder goes out of play, the batter is awarded:

Details matter, good for discussions! More details would have needed to be referenced to AI.

So going by RAD's description the ball might have gone in the dugout off the (A) ground or (B) off the receiving fielder's glove. Then we have different awards because (A) is a throw, but (B) would have been knocked into the dugout.

Yes I do believe in this situation would not have considered this a basic overthrow.

 

[The Man In Blue]

As was said before, an overthrow can careen off of a glove and still be an overthrow.

What we need for it to not be an overthrow is some intervening step or action that redirects the ball, such as: the fielder knocks the throw down and then kicks if out of play OR the fielder secures the ball, swings the glove for a tag, and the ball flies out of play.

No, do not trust AI, especially when it comes to complexities in a game that has no less than four different major rule sets.