Incorrect its/it's correction

[samdorey]

The sentence "We originally ran a calibration in Q3 of 2023, since then we have changed enough of the model that we thought it necessary to re-do the calibration."

Languagetool thinks that the use of the phrase "we thought it necessary" is wrong due to its incorrect use of its vs it's.

As far as I'm aware this grammar is fine, though it omits an implicit "was". For example, see this line from the bible.