If NJ state law is as you quoted it with no amendments then you(and Aquila Blanca) are correct. Unless an ammo was specifically designed as a handgun ammo, you should not need a FID to purchase it. Unless the store has their own separate policy, it's not up to the store employee's to re-interpret the law.
Maybe a call to corporate is in order explaining to them the confusion their store manager seems to have on the issue that is costing their company $.
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