Yes Susan I know that's the way Joan Baez sang the song. Her version came from Randolph's text so she must have changed it. Randolph said that Mrs McCord did call the song by the title of "Lady Mary" and Max Hunter, who also recorded Mrs McCord, called it by his mother's title, "Palace Grand". Carl Sandburg called it "The Sad Song". The second verse as in Randolph's collection is:

Verse 2.
And there in his garden strolled,
All robed in satins and lace,
A lady so strange and cold
Who had in his heart no place.

Ref. Vance Randolph "Ozark Folksongs".

I haven't seen Sandburge's text or Hunter's so my comment was based on Randolph's notes.