However, this record looks like the existence of OSI overruled the fact that a same station exit between 0-2 minutes is cancelled within 45 minutes, which can prove problematic if one accidentally enters the wrong station among a set of OSIs to start his journey.
It seems to have been cancelled to me. They didn’t deduct a new entry charge at West Hampstead LU and adjusted it to the ‘correct’ fare for the whole journey on exit at Willesden Green.
I also tried entering a station before 09:30, realised that it was too early and exited immediately (where a peak maximum fare was charged) and re-entered after 09:30, and the correct off-peak fare was finally deducted.
That’s also what I’d expect to happen.
I’ll use two cards if I plan to do such journeys in the future.
That will certainly get round your 60p overcharge, but bear in mind if you do further journeys in the same day you might not benefit from the correct cap.