@Oryangatan glad someone is paying attention. Sigurd spent all day (or at least, from the moment he noticed Timora was missing) setting up the expectations of the adults. Hell, it seems he's spent every day since the moment he decided he liked Timora ruining the MC's reputation, and the MC was too much of an unpopular reclusive pushover to fight back effectively. There's nothing he can do at that specific moment to counter the accusation.
If Timora said she wasn't forced, they'd just think she's trying to cover for her friend who is in trouble. And if she tries to accuse Sigurd, what are adults to believe? That an upright child is actually a psychotic murderer that has been playing them all along, or that the troublesome kid is lying? Plus he doesn't have the bindings, and since he healed himself, doesn't even have the bruises of being beaten and tied up. And even if he did, they might believe he got hurt in the dangerous forest.
He is only 10 and so far no one was really hurt, plus Timora knows the truth and her opinion is the only one that really matters. His parents will still care for him even if they think he's a bit of a troublemaker (especially since he wouldn't show it at home, so they're probably at least somewhat skeptical). The rational response is to suck it up, avoid falling for more of Sigurd's traps, and eventually expose him. Assuming he wants to stay around long enough that his reputation would matter while hiding his reincarnation.
And really, the only thing he needs to do to render Sigurd helpless is to spend time with people around the village so they have a good impression of him, and he has some kind of alibi at any time. Which is why I said he was reclusive before. No one has seen him do any of the things Sigurd regularly accusses him of, but they also didn't know what he was doing, and this appears to be a tiny village where everyone knows everyone. Sigurd's lies would fall apart instantly if when he accused him of something, he could point out that he had been with an adult all along. And while he was around adults, he couldn't be bullied either. Instead he apparently spent most of his time out of sight, just so that Sigurd could find him and set him up.