Oh... so this is one of those "uncomfortable truths" scenarios.
Certainly, it would be a major blow to the morale of the Gunthral if the Hexenhas "true" origin came to the spotlight, i put "true" like that because the veracimility of the that "truth" isnt important, if this got out and people discovered that the secretive martial nation that does mercenary work has it foundations steeped in cannibalism, it would be a PR nightmare to say the least.
Worse yet... is that this blight on their name is deeply wedged in a place where a great number of their soldier leave their real bodies to be safeguarded... can you imagine the blow it would make to their reputation?
This is a disaster of apocalyptic proportion for an organization, the Grunthal would never recover from it, and Austad must be beyond scared from that.
Remember what he said to the leader of the Zonohedron... "people say that Panzerkunst has technique, but no "way"", meaning they don't have a unified ideology, and as someone that wants to change that, this situation for him is much worse than some shadowy organization of hegemonists.
Kishiro-sensei got me good, here I was thinking about all the horrible scenarios where the Hexenhaus is some sort of biological research group hell bent on hegemonic domination or something similar, when they are a clubhouse of crazy mofos that think there is any justification for cannibalism that isn't complete and utter despair.
The peek into Tiger Sauer was cool, with those overalls and plow, it is clear the man was someone who greatly prioritized the act of nurturing, I can see why people would follow him... unfortunately, the darkness in some people is too deep.