No, it is demonic.
When people reject God and His law and His ways, something else fills the void — and that something else is satan and his legions.
Read Romans 1.
I think you’re right. At some point in time not sure when in history, demons became psychological illness and evil became being judgemental rather then just an observation of behavior. I know in the last decade or so I’ve observed some odd behavior from good people which is just off the wall and makes me wonder ... what is going on.