I see where you are getting messed up David. For the time being forget about what what something is made of and instead try to understand this by using construction "terms".
In the era your house was built the normal construction method was to build the floor joist system and nail down a subfloor and build the walls on top of the subfloor. After the house was dried in they would have come back and added a a square edge underlayment to make an additional layer. The first layer that runs underneath walls is termed the Subfloor, the second layer is termed an underlayment, does not matter what what was used or what is was made of it's still considered an underlayment.
Construction methods changed after that era to start using a single layer subfloor that was thicker. tongue and groove, has better glue, and better layers of intermediate plies with no voids. This way of building serves the purpose of a subfloor "and" underlayment. That practice still stands today, so your lumber yard man is absolutely right. They normally don't use underlayments on new construction anymore because the better subfloor material nowadays serves both functions for a hardwood installation.
Think of it in terms of layers instead of what something is made of.
So now you need an underlayment replaced. Well, you could use several different things for that depending on how thick you need it and what will be the finished floor going over top. In your case it will be hardwood so you should use a plywood that is whatever thickness you need and with square edges because you will be using this as an underlayment by definition. A CDX grade plywood is suitable for this. It has square edges, exterior glue and the voids in the intermediate plies won't really matter because you have a "subfloor" underneath it.
Got it?