Yes, I consider such frivolous diagnosing to be damaging. I've witnessed it myself (no further comment).

Still, identifying and helping the individual challenges of the patient is a necessity considering the amount of discrimination in today's society. You need to be a very well balanced and strong individual to thrive in that situation, if not barely survive. At least in my country, this is how it's supposed to happen.

Hopefully, when society matures less intervention will be necessary.