Question about the proof of Bott and Tu's Proposition 12.1: Given any double complex $K$, if $H_\delta H_d(K)$ has entries only in one row, then $H_\delta H_d$ is isomorphic to $H_D$.
Remark: $\delta$ is the horizontal, and $d$ the vertical, delta map.
I do not understand the highlighted statement. From what I understand, if $H^{p+2,q-1}_\delta H_d = 0$ this means the following $\ker(\delta: H^{p+2,q-1} \to H^{p+3, q-1}) = \text{Im}(\delta:H^{p+1,q-1} \to H^{p+2,q-1})$. However, it is clear that $\phi_1$ is not $d$ closed, so it does not represent a $H_d$ cohomology class, so it surely cannot represent a $H_\delta H_d$ cohomology class, right? Any help would be appreciated.

If I understand your question (and I am not screwing up!):
(Up to sign errors... ) $D''\delta \phi_1 = \delta D''\phi_1 = \delta (-\delta \phi ) = 0$. Hence $\delta \phi_1$ is $D''$-closed.
Addendum: Therefore $\delta\phi_1$ is both $d$ and (visibly) $\delta$ closed, and thus represents a class in $H_\delta H_d$, which is, by assumption, $0$ in the appropriate bi-degree. Hence there exists $\hat \phi_1$, such that $d \hat \phi_1 =0$, and $\phi_2$, such that $$ \delta \phi_1 = \delta \hat \phi_1 \pm d \phi_2,$$ or $$\delta (\phi_1 -\hat\phi_1) = \pm d\phi_2.$$ Since $\hat\phi_1$ is $d$-closed, we can replace $\phi_1$ with $\phi_1 -\hat \phi_1 $ to keep $\delta \phi + D'' \phi_1 = 0$, and also to obtain the desired $ \delta \phi_1= \pm d\phi_2$.