I don't know whether the RoySocProcB paper has all the ideas as I've not seen the thesis, but in the student/supervisor's defence publication in a peer reviewed paper should not be influenced by prior exposure in a thesis ... with the emphasis on 'should'. However, PhD these can often contain incomplete studies that need finishing/validating/expanding for publication.
Since subsequent funding is greatly influenced by peer reviewed publications students (sometimes) and supervisors (more often) embargo them. I've done it several times and would do it again. I have one embargoed currently for exactly the reasons above. The career of the student, the supervisor and the possibility of continued funding may depend upon it.
Research funded by public monies should be available and not hidden behind a paywall ... but that doesn't mean it should be available immediately, or with the potential negative impacts on careers/funding.
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