Discussion on question by user32613: Managing team members performance as Scrum Master. Have I overreached and how should I recover?

It seems that you've been stepping quite beyond what a typical Scrum Master's role is. I suspect your team member feels the same. The fact your manager does not share your concerns with respect to the team member suggests to be that you've done a poor job of aligning your expectations with management. I suggest a core factor in whatever you decide to do is to determine if you can bring into alignment your expectations with your manager. If not, time to move on.

Often HR departments and managers believe whoever complains first and loudest. Regardless of the situation.