You are correct that it is incorrect
The legend exists however and was particularly popular among German immigrants to the United States. It is called the M¸hlenberg legend. The historical core of it is is a vote in the United States House of Representatives from 1794, where a group of German immigrants asked for the translation of some laws into German. This petition was rejected by a 42:41 vote and the German born Delegate of Pennsylvania, Frederick August Conrad M¸hlenberg decided the vote with his decision against the translation of the laws. He was later quoted as "the faster the Germans become Americans, the better it will be".
German immigrants even got their own translation of the American national anthem, but to many descendants of German immigrants these attempts to "cling to German roots" ended with the beginning of WW1, when sauerkraut was renamed into "liberty cabbage"
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Your turn arboldin