Please don't fall into the trap on perverting the course though because that is proper squeaky bum time. I can remember quite well who was driving my cars over the last few
Months, time, date, location
You are missing the point. They can't action the NIP as it's time-expired, therefore the S172 argument is irrelevant.
On 1 July the DVLA re-registered the car due to it being listed as a Volkswagen GTI and the address was updated.
So was the address previously wrong?
If your address was previously incorrect, then this will nullify the debate about whether they're too late to issue the NIP.
They only need to take reasonable measures to contact you within 14 days. If they sent the NIP to the wrong address, because your DVLA details were wrong, then I don't think you'll be able to pursue the 'it took 60+ days' argument.