Electrical outlet is reading “correct wiring” but doesn’t work
Ah, the "magic 8-ball" testers.  

The legends are useless.  Hot ground reverse suggests it is seeing power between hot and neutral, and neutral and ground.  Nothing says the voltage is 120V. For lack of a neutral, HN and NG lamps were in series seeing 60V each. This was a lost neutral. Hot and neutral were never reversed. I hope you did not reverse them in an effort to clear this message!

A hot-neutral reversed combined with a lost neutral would also read "correct" and yet not work.