No, I think this would be the normal approach. If they are launching a new Autavia Calibre 5 in the next few months, then you wouldn't want there to be any stock of the Isograph in the stores when the new watches arrived. That would confuse customers, not all of whom get the difference between the two models that will look 99.99% the same.
OK, some outlets will sell through their allocation, but the only way to be sure is to recall the watches still in the channels and then be sure that all Autavia Calibre 5s in stores are the new ones.
There was a similar approach- under different circumstances- will the Calibre 1969. There was no issue with the movement, but when it was decided to cancel the watch, all Carrera 1969s were sent back. I recall a couple of years ago that TAG Heuer in Australia had to send back the Carrera Calibre 36 range, even though they were selling well in AU...because a global decision had been made to discontinue the watch.