A dispute only applies to the accuracy of the information identified in the dispute.
If they have failed to update their reporting to acknowledge subsequent payments, the outcome of the dispute would only require that they either verify the accuracy of their last payment or correct so as to acknowledge the subsequent payments.
No, it would not be a basis for deletion of a reported 120-late. That reporting is based on the accuracy of the account being delinquent at that level on that date, not on any issue of subsequent payments.
As an aside, even if subsequent payments were received, that does not per se establish that they were sufficient to return the account to good-standing.
