It was mentioned that it would be problematic to scratch out the extra word because it would leave too large of a space, and that it would be problematic to make holes in the klaf (see the above link for more).
As a possible solution, I would like to propose the following:
1) Scratch out the lamed of the first "uvechol" and the vav, veis, and chaf of the second "uvechol," leaving the lamed of the second "uvechol" intact.
2) Scratch out the tag (only) of the chaf of the first "uvechol."
(Restore the sirtut if necessary.)
3) Stretch out the chaf of the first "uvechol" to reach the lamed of the second "uvechol," adding a tag at the new end of the now stretched out chaf.
It should now appear as in this graphically altered illustration:
It might not be the prettiest or the most lechtichila (especially for Ksav Alter Rebbe), but is there any reason that it should not be kosher after following the above?