It isn't at all uncommon to see people who have got HB/CTB and not IS even on facts where there is very little hope of an R2R argument (eg, lone parent never worked and not looking for work), and that way round is commoner than the other, since DWP is at least marginally better at gtting the law right than some councils, at least when it's disallowing correctly.
But essentially the law is the same for both so if there is no R2R there has been an overpayment. Assuming full disclosure of acts on the claim for benefits then clearly the OP results from official error so the only question is whether the claimant could have been expected to recognise they were being overpaid and why should they? At least until they get the decision from the DWP which bless them they want to appeal saying "look this can't be right I'm getting housing benefit."
So unless they can prove defects in the claim form like not answering questions such as "how long have you been in the UK" or "what's your nationality", looks like not recoverable to me.
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