They're treating that sword exactly the way you would think they would, honestly.
I mean, it's like getting ahold of the nuclear access stuff of a modern nation; they're definitely gonna ask you "how" until you answer, and this isn't a modern society with the concept of "Basic Human Rights," so you probably should be happy the author included a "Healing Potion" for their little Q&A session. It's a bit of a dark turn, but...
Also, and apropos of the earlier Cinderella conversation, they just walked in to a store called "Pinocchio."
If you're so convinced that Cinderella (the 17th century writing of a much earlier tale) doesn't exist, and you're all stewed up about other reincarnators, how are you just chillin, walking in to a place called Pinocchio?! (Which is also, I might hasten to add, a 17th century writing of a much older tale!)
I mean, seriously! The stories even take place in roughly the same time and place, give or take a few miles and minutes.
And you're not even concerned at all, suddenly?
Pshaw.
It's just sloppy; nobody's ever heard of Cinderella, but Pinocchio is totally normal?
Yeah, sure... Pull the other one, dipshit; it's got bells on...