But yes, (putting my "professional paranoid" hat on for a minute), if I can get a bad score, or even a 60/40, converted to a "session score" by actively compounding partner's screwup, the incentive for certain pairs to deliberately attempt to induce it is high. If they care enough about their club game scores to do that, well, "you have three options...".
I've been trying to ignore the actual hand in most of my comments (as requested), but the joy of this one is that the trivial (correct? in my eyes, it is) ruling would give them back the result they should expect to get on the board! (p-p-2NT-p; 3♣ "do you have a 4-card major?"-p-p "thanks for picking a minor, pd"-p) Okay, maybe West would come in over a "5-5" 2NT,... but still, it's relatively easy to do the right thing at the table (work out what the agreement actually is, ensure E-W know it, let the auction continue, and be willing to award
But listen, if (club) directing wasn't as hard as blackshoe and I make out, it wouldn't pay as well as it does!
I would hope that the person who is clearly not a novice (playing Precision?) making the statement that South made, given that it "was an error in procedure that required an adjusted score for a contestant" - especially because it likely was to their definite advantage, and obviously so, to make that error - got a procedural penalty to go with their "no play". Or they will keep doing it.