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Basic Lesson of Deceit is an Arcane tradition, but the spell granted is Phantom Pain, which is an Occult exclusive spell.

This is similar to how other casters specialties work.

Cleric's deities provide domain spells at times that are not Divine such as Sarenrae providing Burning Hands at 1st level for the Fire Domain.

Sorcerer's bloodlines do the same. Demonic Bloodline, for example, provides the Divine Tradition. Several of the Granted spells are not Divine but instead Arcane, Occult or Primal (Acid Splash, Enlarge, Slow, Disintegrate, and Implosion).

The spells become whatever tradition the spellcaster uses despite what tradition they originally were.

Thanks, missed that! =)

Basic Lessons, Lesson of Fate (Occult), pg 38

Under Basic Lessons, all Lessons provide either a cantrip or 1st level spell for the familiar to learn. The exception being the Lesson of Fate which provides Augury which is a 2nd level spell.

Does a 1st level witch get to cast this at 1st level or must they wait until they get 2nd level spells in order to cast the spell?

Should augury be replaced by a cantrip or 1st level spell?