Leon said:
All I can say is send the application back to them with a copy of the VO's letter highlighting where he says your spouse has only been in Canada since January and a yellow post it note where you write: "Yes but we lived together in Ireland for x months before that, see attached application and evidence". Maybe the VO was having a bad day and didn't really look at it. I am baffled too but they are only human and can also make mistakes.
There is no point in an appeal as it would take too long, you are better off resubmitting, get a new PCC and send it in (in the manner Leon suggests).
I agree with Leon and yourself, from the information given, it looks like the VO didn't read the app' properly.
In your other thread you say "The officer put a sticker with an address at CIC and which has his/her initials on, so it will be going back to the same person."
IMO This may mean that your app' will to go to the officer when it arrives, rather than just sitting in the queue.