You don't seem to understand what Wagner is. There is no conflict between Putin and Wagner's Prigozhin. Putin does not need to "smooth" any divide. Wagner Group is an extension of Putin himself. It exists only as a means to deny Russian involvement in the worst atrocities. It's all about the perception of a rogue and dangerously unaccountable military force, when in reality it does exactly what Putin wants.

"psychosis hijacks your brain"

It alters your perceptions, it does not alter who you are. Even in the depths of psychosis a person is still aware of themselves. Destruction, self harm, lashing out are all understandable from someone at their most desperate and confused. But child murderers are just child murderers.