Brown spots bottom of pool.

Hello TFP,
I am happy to have someone give me great advice!

Problem I have is a massive probably 60 or so brown spots on the bottom of my IG pool and some on the steps. I had some old vitamin C tabs so I crushed them and placed it on a brown spot on the step. It didn't change the color.

A Pool guy said it is the iron bleeding up from the rebar. I won't get into what he told me to do!

Then someone else should drain the pool and grind out those spots and then put in the new diamond bright? HELP!
IMG_5489-2.jpg

I have other photos also
 
Here is what I am thinking!

1) I need to rework my waterfall and fix some of the leaks were the fiber optic lights are then re-color it with Portland cement and color.
2) I need to remove the remaining tile grout above the tile which is chipping off. Last time I had the pool refinished the pool guy left a grout line of 3/4"
3) I found 1/2" Thin tile which I want to put in there then re grout.

Since I need to drain the pool to do the tile.
Should I grind out the brown spots and add new diamond Brite?
Then Acid wash the entire pool with Muriatic Acid (50% MA and 50% Water)?
 
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