Yes.
Just for those not aware of it here is the paper:
https://arxiv.org/pdf/1111.3328.pdf
The out is what is mentioned in the paper - some for some reason seem to forget it, even though its clearly stated it in the original paper:
'The argument depends on few assumptions. One is that a system has a “real physical state” – not necessarily completely described by quantum theory, but objective and independent of the observer. This assumption only needs to hold for systems that are isolated, and not entangled with other systems. Nonetheless, this assumption, or some part of it, would be denied by instrumentalist approaches to quantum theory, wherein the quantum state is merely a calculational tool for making predictions concerning macroscopic measurement outcomes.'
You are right - if you do not invoke the out then the wave-function is clearly a hidden variable - I just never thought of it that way.
Thanks
Bill