These are now the ONLY 2 creatures on the battlefield under my control.
Does Sigarda, Host of Herons ability 'cancel' or 'counter-act' Phantasmal Image's ability - "When this creature becomes the target of a spell or ability, sacrifice it"
Examples:
I pass the turn to my opponent and he successfully resolves Diabolic Edict. Outcome ?
I pass the turn to my opponent, he makes a land drop and passes the turn back to me. I move to combat and tap Phantasmal Image to indicate an attack. My opponent responds by casting Celestial Flare. Outcome ?
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When you copy a legendary creature, state based actions will have you destroy one of the two as per rule 704.5k.
704.5k
If a player controls two or more legendary permanents with the same name, that player chooses one of them, and the rest are put into their owners' graveyards. This is called the “legend rule.” Only one copy of a given legendary card may be in control by a same player at the same time.
You will not be able to keep both on the battlefield unless the copy spells creates a "non legendary" permanent, like for instance Helm of the Host
While technically correct, that answer doesn't really get to the heart of the matter. Let's assume a Mirror Gallery on the battlefield and I'll answer:
1) You don't have to sacrifice anything with Diabolic Edict resolves because it's a spell an opponent controls. Since its only effect is to cause a sacrifice, nothing happens but the spell resolves.
2) Same outcome.
HOWEVER: If your opponent has an Arcane Lighthouse and manages to target the Phantasmal Image-Sigarda with a Lightning Bolt, you MUST sacrifice it. That's because Sigarda doesn't stop you sacrificing anything to abilities YOU control, and you of course control the Image's triggered ability.
Does Sigarda, Host of Herons ability 'cancel' or 'counter-act' Phantasmal Image's ability - "When this creature becomes the target of a spell or ability, sacrifice it"
Examples:
You will not be able to keep both on the battlefield unless the copy spells creates a "non legendary" permanent, like for instance Helm of the Host
Modern: WUBRG Humans - GBW Traverse - GWU Knightfall - GRW Bushwhacker Zoo -
1) You don't have to sacrifice anything with Diabolic Edict resolves because it's a spell an opponent controls. Since its only effect is to cause a sacrifice, nothing happens but the spell resolves.
2) Same outcome.
HOWEVER: If your opponent has an Arcane Lighthouse and manages to target the Phantasmal Image-Sigarda with a Lightning Bolt, you MUST sacrifice it. That's because Sigarda doesn't stop you sacrificing anything to abilities YOU control, and you of course control the Image's triggered ability.
I̟̥͍̠ͅn̩͉̣͍̬͚ͅ ̬̬͖t̯̹̞̺͖͓̯̤h̘͍̬e͙̯͈̖̼̮ ̭̬f̺̲̲̪i͙͉̟̩̰r̪̝͚͈̝̥͍̝̲s̼̻͇̘̳͔ͅt̲̺̳̗̜̪̙ ̳̺̥̻͚̗ͅm̜̜̟̰͈͓͎͇o̝̖̮̝͇m̯̻̞̼̫̗͓̤e̩̯̬̮̩n͎̱̪̲̹͖t͇̖s̰̮ͅ,̤̲͙̻̭̻̯̹̰ ̖t̫̙̺̯͖͚̯ͅh͙̯̦̳̗̰̟e͖̪͉̼̯ ̪͕g̞̣͔a̗̦t̬̬͓͙̫̖̭̻e̩̻̯ ̜̖̦̖̤̭͙̬t̞̹̥̪͎͉ͅo͕͚͍͇̲͇͓̺ ̭̬͙͈̣̻t͈͍͙͓̫̖͙̩h̪̬̖̙e̗͈ ̗̬̟̞̺̤͉̯ͅa̦̯͚̙̜̮f͉͙̲̣̞̼t̪̤̞̣͚e̲͉̳̥r͇̪̙͚͓l̥̞̞͎̹̯̹ͅi͓̬f̮̥̬̞͈ͅe͎ ̟̩̤̳̠̯̩̯o̮̘̲p̟͚̣̞͉͓e͍̩̣n͔̼͕͚̜e̬̱d̼̘͎̖̹͍̮̠,͖̺̭̱̮ ̣̲͖̬̪̭̥a̪͚n̟̲̝̤̤̞̗d̘̱̗͇̮͕̳͕͔ ͖̞͉͎t̹̙͎h̰̱͉̗e̪̞̱̝̹̩ͅ ̠̱̩̭̦p̯̙e͓o̳͚̰̯̺̱̰͔̘p̬͎̱̣̼̩͇l̗̟̖͚̠e̱͉͔̱̦̬̟̙ ̖͚̪͔̼̦w̺̖̤̱e͖̗̻̦͓̖̘̜r̭̥e͔̹̫̱͕̦̰͕ ̗͔̠p̠̗͍͍̱̳̠r̰͔͎̰o͉̥͓̰͚̥s̟͚̹̱͔̣t͉̙̳̖͖̪̮r̥̘̥͙̹a͉̟̫̟̳̠̟̭t͈̜̰͈͎e̞̣̭̲̬ ͚̗̯̟͙i͍͖̰̘̦͖͉ṇ̮̻̯̦̲̩͍ ̦̮͚̫̤t͉͖̫͕ͅͅh͙̮̻̘̣̮̼e͕̺ ͙l͕̠͎̰̥i̲͓͉̲g̫̳̟͈͇̖h̠̦̖t͓̯͎̗ ̳̪̘̟̙̩̦o̫̲f̙͔̰̙̠ ̹̪̗͇̯t͖̼̼͉͖̬h̹͇̩e͚̖̺̤͉̹͕̪ ͚͓̭̝̺G͎̗̯̩o̫̯̮̟̮̳̘d̜̲͙̠-̩̳̯̲̗̜P̹̘̥͉̝h͍͈̗̖̝ͅa͍̗̮̼̗r̜̖͇̙̺a̭̺͔̞̳͈o̪̣͓̯̬͙̯̰̗h̖̦͈̥̯͔.͇̣̙̝