The first line is not part of the article history, but rather a line extracted from the deletion log. The deletion
log in 1.3 uses UTC always, as it's stored as text and needs to be consistent (it used to be even worse -- it
would list the local time of the user who deleted the page!) Normally it should be visually distinct, spaced from
the following history lines. With only one history line as in the linked example this isn't very obvious, perhaps.

The history line(s) then follow, like everything else shown with the viewing user's local timestamp.

In any case this visual inconsistency should be gone in 1.4, since the deletion log is now stored as a machine-
readable table and the timestamp can be shown in the user's local time settings.

wikimedia-bugzilla wrote:

So this bug is fixed?

Resolving as fixed, as 1.4 does this correctly.