Be sure the 365 days is measured correctly. The date of the rollover contribution is immaterial with respect to the one rollover limitation. But 365 days must pass between the dates that the distributions being rolled over were received or the second rollover becomes an excess IRA contribution for the year the disallowed rollover was done. That was in 2020.
SInce the deadline to remove the excess contribution with earnings for 2020 was 10/15/2021, the excess will be removed after the due date and earnings do not get calculated or removed, but the 6% excise tax is due for 2020  to the extent that the rollover cannot be characterized as a new regular non deductible IRA contribution for 2021. The second distribution must be reported on an amended 2020 return as a taxable distribution because it was not eligible for rollover. There is also a 6% excise tax due for 2021 on Form 5329 to the extent that the friend could not apply some of the excess as a 2021 non deductible IRA contribution on the 2021 5329. The 5329 Inst describe how an excess contribution can be applied as a later year contribution and if this can be done it will reduce the amount the 6% excise tax is applied to. 
If the above steps are completed correctly, the 1099R for the removal of excess will not be taxable since the tax on the second distribution has already been incurred. There will be no double taxation, but there will likely be 2 years of excise taxes since the deadline to remove an excess with earnings was missed.
Since the deadline has passed for removing the excess with earnings, there will be no 8 or P coding for the distribution. It will be coded 1 (early) or 7 (normal). Remember, the second distribution will be taxable in 2020, so when it is removed it should not be taxable again. The key is that when the removal is requested from the IRA custodian, the custodian should be told that the distribution is the return of an excess contribution created by a disallowed rollover AFTER the due date per Sec 408(d)(5). Box 2a of the 1099R (issued Jan, 2023) should be blank. A correct 1099R for the removal of excess is critical to have Box 2a blank to avoid double taxation.
To summarize, the intended result per year follows:  2020 return – report the second distribution not eligible for rollover as taxable income, and the 10% penalty will apply if not 59.5. A 2020 5329 will also include a 6% excise tax for the uncorrected excess contribution. The 2021 return will also require a 5329 for another 6% excise tax since the excess was not removed by the end of 2021. The excess tax can be reduced if some of the excess can be applied as a 2021 regular contribution (non deductible). The 2022 return should include no taxable income for the removal of the excess amount (tax already paid and no deduction taken for any part of the disallowed contribution ). A final 5329 will show the removal of the excess balance so there will be no 2022 6% excise tax.
The one rollover limitation was tightened up by the IRS in 2015 because too many people were taking temporary loans from their IRAs. However, it is typically up to the IRA custodian to warn taxpayers of this rule. If these distribution and rollbacks were made with a single IRA custodian, that custodian should have known that the second rollover was not allowed and should not have accepted it.

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