Almost everyone did things wrong in this scenario.
The teachers reacted to it completely inappropriately. They overreacted to an extreme degree, allowing their extreme lack of experience in the area cloud their judgement. Next thing you know unusually large watches are bombs, water bottles left overnight are actually filled with C4, and iPads are stuffed with TNT.
They also didn't follow basic protocol procedures for a potential bomb threat. The school wasn't evacuated, hell, even the classroom itself wasn't evacuated. What kind of ignorant idiot doesn't evacuate the immediate area when there's a bomb threat? The teacher should be fired for that alone, putting the lives of dozens of students at risk assuming there actually was a bomb threat. Imagine if there was an ACTUAL threat. Everyone would be dead and it would be a nation-wide tragedy.
The police also handled it extremely poorly as well. Them coming at all was not the issue here, definitely not, but the police broke regulation which would have put more dozens of lives at risk were there an actual threat, and needlessly held the child in jail when there was absolutely no evidence of any crime being committed. They didn't send a bomb tech to brown townyze it before actually doing anything with it, which put many many lives at risk, and also led to an incredibly bad interrogation where he was denied his phone call and the interrogating officer completely and utterly stonewalled him for no reason, completely refusing to accept that it might not be a bomb. He has no excuse of ignorance like the teacher does, this is his JOB.