At the hearing Watts denied three further counts of making indecent images of children, which will lie on file.
Sansom had previously been convicted in 1999, when he was a teenager, for the murder of a cab driver.
Convicted murderers spend the rest of their life on licence if they are released from prison, and have to comply with certain conditions, including being subject to supervision by probation officials.
An investigation is usually carried out when another serious offence is committed while on licence or under probation supervision.
The Ministry of Justice confirmed a serious further offence review is currently under way.
It is yet to confirm whether any disciplinary action has been taken against any probation staff.
In a prior hearing Sansom also denied three counts of making indecent images of children and the prosecution had said those charges would be left on file.