But if it was his undiagnosed, untreated schizophrenia which contributed to the offence then, yes, it's a factor that mitigates in sentencing, since it reduces his personal culpability and it suggests that risk to the community may be mitigated by diagnosis/treatment.
I think we agree that the newspaper reports of the psych reports are confusing, but one possible reading of this. . .
. . . is that, as a result of the diagnosis made in the first report, Rashid has received treatment which means that although still "psychologically vulnerable", he's not now "sufferingfrom a psychiatric illness".
(It's also worth pointing out that, if mental health issues are part of what's at the root of his offending, then in terms of risk to the community the longer he spends in prison the worse, since prison is not a place conducive to good or improved mental health.)
Also slightly off-topic: Yes, I know.