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If English is your native language and you still don't know this...
I have no problem remembering the rule, I absolutely recognize it immediately every time I see a misuse in someone else's writing.

The problem is, my brain wants to be able to do substitution of "<named-thing>'s" to "<it>'s", as if the pronoun were a variable and thus amenable to substitution wherever the name of the thing itself could be used, so without noticing it often comes out (after substitution) as "it's".

I feel the same way as you. This is the rule in English and it seems like a bad rule.