Is above average number of years spent on PhD considered a red flag in future academia or industry positions? I am currently working on my PhD in a Canadian university. I already had a master's degree before joining the PhD program. In my department (chemical engineering), the normal timeline for getting a PhD is 3.5-4.5 years (if joined with a prior master's degree). We take only 2 courseworks in the first semester. More are taken if the advisor or the committee instructs one to do so. Rest of the time is dedicated to research, TAship, etc... 

However, due to my own mistakes (taking too much time initially to explore the research area and scope) and wrong decisions (investing too much time of a day in developing my hobby), I will be defending later this year with the total PhD duration equalling 5 years 4 months. 

I will have 4 publications (in decent journals) by the time I graduate. I also have couple of other works that will eventually get published. I am not concerned about my publications record at the moment as that's something in my control and which is directly proportional to the hard work I put in the future.

My question is: Will my above average number of years spent on a PhD be considered a red flag in future academia or industry positions?
It's well known that there is a significant amount of variability in the time that it takes for a student to finish a PhD, particularly in programs with more rigorous standards. My own graduate department, for example, preferred people to finish in 5-6 years, but was somewhat infamous for allowing some to take as long as 10 years.

In fact, I would venture to say that it is the opposite. I would typically consider it a red flag if somebody took a shorter than usual amount of time to obtain their Ph.D. Typically if you have a really good student, you don't graduate them faster, but instead you graduate them in the normal time but with a much stronger portfolio of results. Shorter-than-usual Ph.D. studies, on the other hand, are typically a sign of somebody rushing to depart the program by meeting the bare minimum of requirements.

Bottom line: if you've done good work and have good publications, the fact that you took one more year than is typical for your department will barely even be noticed, let alone held to be significant. This is even more true for most industry jobs.

If somebody does actually ask you, however, focus on the first of your reasons (time spent figuring out an appropriate area of focus) rather than the latter reason (time spent working on out-of-work projects), as the second may be of legitimate concern to future employers.