London: Sudesh Amman, 20, was killed by an undercover police officer in South London after he stole a knife and injured bystanders in the attack in February last year.
The assaults, carried out in broad daylight, took place over a period of 62 seconds.
Amman, who wore a fake suicide belt in the incident, had previously been jailed for 40 months for preparing and engaging in acts of terrorism.
He was automatically released from prison with a parole hearing 10 days before the Streatham attacks, despite police asking for him to remain behind bars due to concerning intelligence. He moved into a probation hostel in Streatham.
An inquest into the incident heard on Tuesday that Amman became more violent while in Belmarsh prison.
A prisoner report described Amman, who was born in Coventry, as: "A young Asian prisoner who is in for terrorism... has been shouting different things on the wings such as 'this place is full of non-believers'... and 'everyone here will come under the black flag (of Isis)'."
The inquest heard he "shared extreme views including a desire to kill the Queen, become a suicide bomber and join Isis", the inquest heard.
Amman became "angry and agitated" with his mother in phone calls made from Belmarsh, Jonathon Hough QC said, and claimed officers at the jail were "racist".
A note found in his prison cell contained what appeared to be a pledge to Isis, while references to weapons and potential attacks had been found on his computer after he was arrested in May 2018, the inquest was told.
A folder on the device contained videos and manuals, including one described as "how to make a bomb in the kitchen of your mum".
In his bedroom, a notebook was found detailing what was thought to be his "goals for life", which included paradise and jihad, and he had a conversation with a friend's mother about "fighting in Syria", the inquest heard. The woman tried to discourage his interest in it.
Amman was also said revel in his perceived notoriety behind bars and to have mixed with other high-profile terror offenders, including the brother of Manchester Arena bomber Salman Abedi.
Detective Chief Inspector Luke Williams, from the Metropolitan Police, told inquest jurors he "appeared proud to have been the youngest terrorist offender at Belmarsh... (and) didn't seem remorseful".
Intelligence shared by prison authorities with police four months before the attack in October 2019 also suggested he was involved in radicalising other inmates there.
Britain passed emergency laws last year to stop convicted terrorists from being automatically released part-way through their prison sentences following Amman's rampage and a deadly knife attack near London Bridge in November 2019.
In that prior incident Usman Khan, 28, stabbed two people to death while attending a prisoner rehabilitation programme less than a year after he had been released from jail under strict conditions.
Amman was subject to 30 "stringent licence restrictions" after his release from prison – he was unable to visit central London - and armed surveillance.
The inquest continues.