He certainly logged PIC time during the flight review, as he was rated in category and class and was sole manipulator of the controls. However, since he was not legal to ACT as PIC, I was the acting PIC of the flight and responsible for the safe outcome etc. etc. There is a often misunderstood but sometimes important difference between acting as PIC and logging PIC.
Here is a very handy flowchart for deciding if you can Log PIC time:
and I can't find the link to Ed's flowchart which describes when you can Act as PIC. let me do some digging...