From Creatures Wikia
Lacota had this to say about them:
"The Dodgy Norns were created in the mindset that they would be the ONLY breed to be released for C12DS. This was way back with the original team, we were worried (as a few questions on what could truly be done for breeds in the new Docking Station). Frimlin said that the only legal sprites one could use at that point in time was the Chichi sprites (see Beowulf Norn for more info); hence the Dodgy Norns. Along with them, there was a little story:
"While wandering the strange world a group of norns found a computer, they approached it as they would any other, hoping to reap its reward of knowledge. However, since the computer was beyond ancient and its operating system had crashed, the norns were sucked into it and drained of all their color."
The reason behind the name
During the early days of the C12DS project, Apollo was playing with Norns that had Grendel heads. He had left his computer on and some of them escaped through a Warp Portal to another computer. The owner of this computer only had DS so he did not have Grendel sprites and this caused the Norns to appear to have floating ChiChi Norn heads. He claimed that these Norns had messed up his world so in a fit of rage he posted the message on every section of CL's DS forums describing how he thought Apollo had sent him these "dodgy" norns. The cause for the destruction of his world was later found out to be a bad agent installed on his part, but it was decided that Dodgy Norns might be an appropriate name.