For me, the money shots are
"we had to act to protect staff from the distress and harm it was causing
"In particular, the photographic images uploaded appear to only represent a fraction of the choices available to pupils, so a decision has been made by the council to stop photos being taken in the school canteen."
An embarrassing own goal that could have been resolved with a simple "OK, we overreacted, Veg can carry on as before" has been turned into a quite spectacular PR catastrophe.
An Exec Director for Argyll and Bute is appearing on Radio 4 at 1pm - should be fun!