dnd 5e – Is my failure of the Sanctuary spell correct?

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the sanctuary the description of the spell says:

You keep a creature within range against the attack. Until the spell ends, any creature that attacks the creature protected by an attack or a damaging spell must first make a Wisdom saving throw. In a failed save, the creature must choose a new target or lose the attack or spell. This spell does not protect the protected creature from area effects, such as the explosion of a fireball.

If the protected creature makes an attack, cast a spell that affects an enemy, or inflicts damage to another creature, this spell ends.

My question is if I dictated the previous spell correctly according to the following scenario:

  • Character A throws Shrine on Character B
  • Creature 1 attempts to attack character B and fails his wisdom salvation.
  • Creature 1 sees character C within its movement speed, so it moves to character C and attacks (regardless of whether or not it has multiple attacks).

The player who controls character A (the one who launched the Sanctuary) feels that, as Creature 1 failed in the saving throw, the attack was wasted and should not have been able to attack Character C. They recognize that Creature 1 can move to Character C But do not attack them.

However, based on the wording of:

In a failed save, the creature must choose a new target or lose the attack or spell.

… I feel that a creature can move and make an attack, since it does not specify anything about the movement speeds and clearly states that another goal must be sought.

I was right? If not, please explain why.