The "Catalyst Below Efficiency"refers to the front cat, as the rear NOx cat has, in the FSI, it's own set of fault conditions, and DTCs.
P0420 is triggered, because the lambda in the rear cat, is indicating a higher level of CO than is expected.
Because there is no EML, the problem is not causing high emissions at the tailpipe. I'm guessing it a minor, or transitory condition. Probably the consequence of something else, rather than a fault. Not the cat, is my guess.
I'd start with taking the readings of the two lambdas, as a log, and, hopefully, get an idea of what's going on.
If there was an EML, or the emissions were high, (at MoT for example), my question would be:
Are there actually high residual CO levels in the exhaust, or are the readings from the rear lambda incorrect?
If the CO levels actually are high, then it is because either the cat is not working effectively, (to reduce the CO), or the mixture is too rich, producing levels of CO which the cat can't deal with.
If it's a mixture problem, the front lambda readings should, (I think), show that. With a lambda of less than 1.0.
If the cat is not working effectively, the front lambda readings will show normal operation, (lambda of more than 1.0, typically 1.5 to 3.0, depending on engine being in Stratified, or Homogenous Mode), but the rear lambda will be greater than 1.0, indicating high CO.
Warning: The above is based on my current understanding, and may not be correct.
Mac.