Right, now all is becoming clear (ish).
Dec 31st was a Monday so touch in before 0930 triggered peak fares. £1.20 appears to be the peak fare for a zone 2-4 NR through journey for a child. This is the fare for the default route which i think might be Norwood Junction - Peckham Rye - Lewisham - Cutty Sark. This explains the fare charged because NJ-PR-Lew is NR rather than TfL.
Now, the words "Route Chosen" have been added since I last obtained a statement of that variety. However, the bug that meant that if you touched a pink validator it confused the report causing the incomplete journey at the start station would appear to still be there. You can ignore that line as it doesn't relate to a touch at Norwood Junction at all. I'm still baffled by the (via Canary Wharf DLR) bit as there doesn't seem to be a fare set via there in the database. Perhaps it added it because you went that way and it can sometimes be a valid description (for other unconnected routes) but the fare chosen was the default route. Anyway, you definitely didn't double touch at Cutty Sark and perhaps the customer advisor was confused by the dummy line at Norwood Junction.
Bottom line. I still think that route should be valid so I hope they add it in, but I'm convinced that the system acted in the way it's been programmed to do. You did nothing wrong apart from not realise that to be charged (or not if free), a route has to be described in the single fare finder.