Harry got Lawbreaker from that first event, killing Justin, but the Velvet Room wouldn't be enough to give him a second rank since he'd have to kill thrice to get it again, right?
But that aside, in the light of Turn Coat, I guess we have to consider that the Wardens' behavior (and the senior council's, actually) is suspect to being mentally influenced. Molly said if it was her, she'd tweak and nudge their behaviors, amping up some aspects of personality (paranoia, anger, conservatism, fatalism, etc) and suppressing others (mercy, empathy, trust, etc). Do we have any way to tell how long Peabody had been exerting influence on the Council? It's possible that he's been doing it for a very long time, so the 'old-school hardline wardens' may or may not be an accurate look at wardens in general. The new-school wardens may be more in line with what the wardens looked like three hundred years ago.