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Free actions are capable of being used mid-action, yes. For instance, the free actions within Mind Control or Charge. Outwit and Perplex specifically cannot, per their FAQ corrections.
Things that are listed as corrections, whether to the rulebook or the PAC, are generally things which cannot be found on their own. Those additions to Outwit and Perplex restricting them from being used within other actions, for instance, would normally go against the existing rules; that truly was a correction to the PAC, changing how something worked.
The clarifications are rulings which stem from the texts of the rulebook or PAC; either they could potentially be realized from the basic wordings, or at least they do not go against anything currently existing.
For HSS, for instance---a correction was required to remove knockback's ending of an HSS(2) chain of attacks. This was something explicitly true in the PAC, but it was no longer meant to be part of the rules set, and so a re-write of HSS in the FAQ removed it. This would not have worked as a clarification, because it was not actually clarifying the rules; clearly, it was a change.
HSS's clarification, on the other hand, that you may use abilities such as JLA while performing HSS(1)---you could arrive at this conclusion on your own, based on reading the rules, but it is being explicitly stated as the case in the FAQ, just so people know for sure.