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Mortarions New datasheet has following:

While this model has 1-6 wounds remaining, each time this
model makes an attack, subtract 1 from the Hit roll.

However he also has this rule:
Lord of the Death Guard (Aura): While a friendly Death
Guard unit is within 6" of this model, that unit can ignore any
or all modifiers to its characteristics and to any roll or test
made for it (excluding modifiers to saving throws).

He is within his own aura so he should ignore the modifier to his hit role?

I am certain this is not intended and I would not be playing it that way, but would like people's opinion on RAW here.

I Assume it is fine to put rules in verbatim as they are publicly available to download free.

See also that it means units close to him battleshocked will still have full OC?

Yea degrade doesn't affect and modifers to oc ignored.

Don't recall did 10e rules say anything is setting fixed value modifier. At least aos rule that says x is y isn't modifier. If same applies battleshock failue still affects dg. But note i'm not certain on 10e.