The Church doesn’t teach that anymore.
Not so. First, the Church has never taught that the state always has the right or duty to forcibly repress error and it still teaches in can and should to serve the common good. Civil authority is “established for the common good of all” (Leo XIII, Immortale Dei 5). In fact, “The attainment of the common good is the sole reason for the existence of civil authorities.” (St. John XXIII Pacem in Terris 54). This mission to serve the common good defines the scope of the state’s authority–the “orbit” or “fixed limits within which it is contained” (Leo XIII, Immortale Dei 13)–it can only take action over human freedom to ensure that human activity serves, rather than harms, the common good.
With respect to religious activity, therefore, the state can only limit it when it would serve the common good–it does not have a right to do so otherwise (of course, the specific limits that are appropriate to serve the common good will vary according to the circumstances of particular places in particular times.)
That’s why, as I noted earlier, in the address Ci Riesce, Pius XII could answer affirmatively that in such circumstances God does “not even communicate the right to impede or to repress what is erroneous and false” and that the duty to repress religious error is not “an ultimate norm of action,” but rather “is subordinate to higher and more general norms.”
On the other hand, the state can place limits on freedom to spread religious error when necessary to advance or defend the common good. The Catechism is very clear on this point:
2109 The right to religious liberty can of itself be neither unlimited nor limited only by a “public order” conceived in a positivist or naturalist manner.39 The “due limits” which are inherent in it must be determined for each social situation by political prudence, according to the requirements of the common good, and ratified by the civil authority in accordance with "legal principles which are in conformity with the objective moral order."40
In other words, the common good must also take into account revealed truth and man’s supernatural end (naturalism denies this) and must be based on objective truth, not just accomplished facts (positivism denies this). The harm of religious error must be considered. “Thus, the measures that are taken to implement the common good must not jeopardize his eternal salvation; indeed, they must even help him to obtain it.” (St. John XXIII, Pacem in Terris 59).
As the future St. John Paul II, Cardinal Wojtyla, summed it up at Vatican II:
No human being or human power has the right to use coercion on a person who has come to an erroneous conclusion, if this conclusion is not itself opposed either to the common good, or to another’s good, or to the good of the person in error. If it is, in fact, opposed to one or more of these, then certainly legitimate superiors, such as parents or those responsible for the common good, can exercise a kind of coercion on the one in error, lest by following his error he cause proportionately grave evil either to others or to himself (AS III/3, 768).