It's kinda late now, but the setting is not in Japan right ? idk, it just have more western setting vibe.
It's Japan, it's just that the church and organization aren't based in Japan (organization seem pretty global based on the priest's monologue on their reach last time)
Benika and her dad are Japanese, while Rose isn't.
On the chapter:
I wonder if those 'police' actually included both the church's knights and the organization's agents, both not knowing their comrades are working under the other side?
Or is this just the church wave and the organization's agents are coming up next (since they mentioned blending in with the police)