I just listened to a podcast analyzing psychology from a marxist perspective, and in essence the root of psychology was always orpressing the workers who misbehave at the factories, and locking them up to keep them away from orderly society. Back then wierdos at the village or farms were or more less tolerated. Freuds psycho-analysis brought some emancipation and a materialistic perspective to people, but only rich people. Fast forward to fascistic eugenic treatment of the perceived mentally ill, as well as the Soviet Union having a rather dismissive attitude towards Freudian psychoanalysis (the attitude was common if you got a job and food you are forever good to go, or similar). However as a small side note, school education had a somewhat progressive element in the Soviet Union as learning was seen that was not an invidual task, but something seen as someone does in a collective, which was in contrast to especially strict militaristic individual prussian esque learning experiences.
The 60s saw a revolution questioning on how society saw the mentally ill, questioning the authorative practices of the mental asylums and saw the anti-psychiatry movement, which went to go all over western europe and the US. This saw, the halfway house type projects in Italy, where a psychologist went on to rent several houses and put the patients in ordinary houses outside of the mental asylums and let them participate in regular society. Freeing up the psych wards went bad in some areas of the world as well, for example in the US, alot of people went homeless after the asylums were closed, same happened in Sweden.
In the end tough, the hippie movement, questioning of authority, capitalism and so on, was haltered, and the wide adoption of psychopharmacy for mental illnesses as well as the more efficient uses of psyche wards with predictable outcomes (amount of beds, less focus on the individual, structured like a normal hospital), is more alligned with traditional market norms, while projects like halfway houses or assisted living go against capitalistic norms and did not go as far as they would have liked. Of course it still exsist today, but yeah.
Today we have two extreme positions on the left. Either mental diagnosis and everything to do with the psychiatric treatments either through medication or therapy is all just opression and we have to do away with as a society. OR everyone, everywhere should have all access to all therapy and all medication at all times, preferably for free or cheap.
The supposed objective view of the neurotic mind and its treatment all the way down to the individual without factoring in societal structures has been friction every since psychology was introduced as a scientific method of analyzation. This friction is still felt today, and is going down heavily on the individual route of functioning correctly, rather than correcting society somewhat.
Personally, for the next few centuries I would find it commendable if we do away with all stigmatization of mental diagnosis and in the end maybe abolish it all. For now, it is defnitely not efficient, to have every fourth person having some kind of ascribed neurodivergency, while not adressing society at all.