I actually like this development. It sets up a good conflict and climax for what I hope is the Manga soon ending. It doesn't feel entirely forced and it's not so big that it massively changes anything (just adds extra weight and seriousness going forward). Generally I'm happy when there are actual consequences so this should be nice. Curious what the other characters would do with this knowledge (if the exhibitionist knight is really worried about our MC she should just spread the truth; most of the strongest people gathered wouldn't let him continue harming himself for their sake).