It looks like you have the E and W hands reversed, but never mind.
West claims his side were damaged. I don't see how, though. After all, he said he would bid 5D anyway. Besides, he knew
North's explanation was wrong, after East's question and South's response. So it begins to look like he's trying for a double shot. Not a good plan. Absent damage, no adjustment for the misexplanation.
The conversation between East and South raises a more interesting question, IMO. East's question, at the time it's made (he should have waited until the bidding was over), and South's response, conveys UI to West and, to me, suggests that NS might make 4H, and so perhaps West should sacrifice. So bidding on is an infraction. I might just adjust the score back to 4H making for NS on that basis. I could be wrong, though, and if so I'm sure David will correct me.