sorry I just read the chapter just now, I'll try to explain what I know
The flashback says that the father stole something.
MC is saying that the father/classmate isn't guilty, when it's supposed to be the classmate's father?
this part is is badly converted from the novel, in the LN MC's classmate didn't blaming him at all, he just come to the MC and basically said "if possible can you please persuade your father to not prosecute him that much?" but when the MC confused because he didn't know what he talking about, the classmates immediately goes "oh so you don't know anything at all? forget it then"
later on, the MC calling his father about his classmate's dad and asking if there's any incident. to which MC's father just mockingly said "oh, he's coming crying at you and use his son to pleading on you didn't he?"
the MC said "nobody is crying, just explain to me what's going on"
MC's dad then proceed to explain that his classmate's dad is an old employee to his company working as a carpenter or something, and then without permission he's taking some hinge and nails from the company supply to make a dog house for his own. the amount of nails and hinge to make a dog house couldn't be more than 1k Yen, but his father exaggerating it into 10k yen. he's suing his classmate's dad to court and saying it that he have to make an example so nobody would dare to cross him.
the MC knows that wasn't the case, he just such a cheapskate that he didn't want to pay the carpenter his pension because he's nearing a pension age. so he took this opportunity to exaggerate his case. thus why after the MC graduate from highschool he just leave home and cutting ties with his father completedly, because he has no respect for his father at all on that point.
the manga quite rushing this part into just few panels, so it's basically just adaptation issue, not the translator fault.
"was caught up" in an attack sounds a lot like they were on the receiving end, which is why people are confused.
Who is saying the "no longer a knight" part? MC's current father wouldn't be trying to defend that.
Lacune was invited, they just didn't go.
the sentence are exactly worded like that even on the official LN translator, it does said "caught up". it's not a grammatical error. I mean the translator could put "forced to attempt" to make the sentence easier to understand. but I'm guessing he didn't read the LN since the explanation about kingeagle attack comes AFTER that sentences. I would still say the translator doing a great job here since there's no mistranslation nor inconsistencies.
some part will be answered on the next chapter I won't spoil you. And for your other questions I don't know how to answer that because to be quite frank I don't understand your english I couldn't really comprehend your questions.