I would have found "It's not instantiated with the new keyword, therefore it is never instantiated" a bit more comprehensible, so I would vote for the second version.
I'm sure if we had n people comment on this topic we would have n different, and likely correct, ways to say the same thing.
However, since this is proposing a "correction" to a body of work released in physical print form (a paper book) I propose that no correction is needed since the original statement "The exception is
never instantiated with the new keyword" is technically correct. Perhaps the phrasing isn't to everybody's taste, but it's not incorrect.