It currently gets applied by both mundane (warshout for instance) and magical means. To me it feels like it shouldn't be a 'magical' effect. I think a lot of players assumed it was cleared by mental wild infusions before the effect type was visible.
Also if it's mental it could be cleared by the new wintertide phial
I'd suggest to roll with mental as the default but then put 'Magically', 'Physically', or 'Mentally' next to the basic status effect in order to clarify whether that effect is using the default. So, Confusion should be mental much of the time, but some effects might have a lasting magical duration (like Mind Disruption). Slow is magical when a temporal warden does it, but not when slime ammo does it. etc.
Alternately, display icons next to each status effect: physical = arm, mental = brain, magical = lightning bolt.