Yeah, this is wrong about ten different ways from Tuesday.
Not the first time this year this has happened, either. Volokh Conspiracy had a similar case in like April, I think. Not sure what the judges are thinking. Aside from the obvious 1A violation, there's the fact that forcing someone to go to a church service isn't going to make them likely to absorb what you want them to absorb.
This kind of go's along with the old saying "you can lead a horse to water but you can't make it drink". I know people that go to church every week and even teach religious classes but would stab you in the back in a heart beat if you crossed them. The article does say it is an option so you are not being forced by government but it is kind of tip toeing on the first amendment.