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I thought I knew the answer to this question but today I realized Joyal and Street only defined string diagrams for monoidal categories. What about string diagrams for 2-categories? Who defined those first?
Perhaps @Dan Marsden would know?
Unfortunately I don't know. Ralf and I did some digging around but couldn't find a definitive answer if I remember correctly. Of course, I would love to know if somebody does understand the history.
I think the earliest occurrence I'm aware of is in some paper by Ross Street, I don't remember which offhand.
Street certainly mentions string diagrams for 2-categories in Categorical structures (1996). Perhaps there are earlier references.
Street also mentions them in Higher Categories, Strings, Cubes and Simplex Equations (1995), which is very marginally earlier.
Perhaps someone can email Ross to see if he had the idea independently, or it came from someone else and/or in collaboration/discussion with others. It may well be that the Sydney/Australian CT seminar prompted it in discussions at talks.