No.
Let me get this right.
Team A are attacking, but the referee gives a free kick for a player from Team A, who is in an offside position, inside the penalty area of team B (let's say he was standing on the penalty spot)
The free kick is awarded from that point i.e. the penalty spot.
Under the rules, Team A must retreat 10 yards, so all of their players will be outside the area.
However, Team B can take the free kick as if it is a normal free kick anywhere on the pitch, so the ball does not have to travel outside the area before it is touched by a second player from Team B.
It must only travel outside the area for a kick out.
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