The dissonance between what the game reality he knows and the reality of the living beings and world that he exists in (which seem to be very real) is interesting, but I really hope it comes to a head sooner rather than later. It's disgusting how he took a professional knight woman, someone who respected him a lot, and probably someone who fought a lot for her position, and psuedo-violently gaslit her into being ok with being a dancer "for the benefit of the knights".
Which in this context, which is a real world with real people, very much sounds like she has been pulled from her position to entertain the rest of the knights. Imagine this humiliation and helplessness. She would rather have killed herself, and she said as much in last chapter, but MC managed to keep her around with some some manipulation.
I'm giving the story the benefit of the doubt that it's deliberately doing its best to craft the most disgusting, most dehumanizing thing possible