It at least proves that Quora moderation is human enough to be inconsistent.
One Quora employee liked your answer enough to put it in the digest.
One Quora user reported the answer for not answering the question.
One Quora moderator agreed with the reporter, and did not care about whether it had been sent out to the digest and was highly popular. That Quora moderator is not the same person as the Quora employee who liked it for the digest. And that Quora moderator is not applying the same criteria as the Quora employee. Nor do they care about whether the answer is popular.
And reluctantly, I agree that is an appropriate action: the moderator is supposed to be objective. (Unfortunately, more popular answers are more viewed, so they are in fact more likely to be reported.)
Whether the moderator actually has a clue or discretion is a completely different question. Quora’s approach on that is in fact that moderators must apply rules robotically, without discretion, so that Quora can’t be accused of favouritism.
(And so that the job can be outsourced to robots or robotic humans.)
So in answer to your question,
Can an answer be reported because people don’t like it even though it is one correct answer out of many.
… well, yes. An answer can be reported for any reason you want; we all have access to the Report button.