They're in the middle of a military base. I'm pretty sure that turning a guy into spaghetti sauce would be somewhat of a bad idea at the moment.
MC , with this medal, is equivalent to a low-class Noble. He also has the
undisputed right to wear those swords.
For all intents and purposes to the outside world, he
is a Noble, regardless of MC's Opinion on this...
And, as is occasionally shown... As a Commoner you do not throw fists with Nobles... They have the full right to cut you down there and then if you even
contemplate doing so. Let alone actually proceed to do so.
If anything, the idiot mercenary being bisected on the spot would be considered normal, and a consequence of his own stupidity.
If anything, our dear combat maid intercepting the attack and merely restraining the idiot would be seen as an act of mercy, and an attempt to maintain decorum on what should be a proud and festive occasion for all involved.
With all the Harem shenanigans and Cool Space PewPew peeps tend to underestimate how incredibly harsh this Universe is... And how big the gap between Commoners and Nobility. Of Citizens and Outcasts.
Not
quite Dystopian, but very much Not Nice™ nonetheless.