So, let's examine this situation closely. Inaluct claims that all of the writings are flavor text, Pandarsenic claims that they aren't.
Now, if Nuke's storytelling actually reflects events that happened, it seems pretty clear that "Sir" Inaluct is the culprit. Sir Sytherion was with a caravan guard when he was struck down, pretty clearly not performing feats of evil magic. Then he was shot with a crossbow bolt, and presumed dead. Except the very next day, he was at camp, bandaged and well. Someone must have saved him since a man on the verge of death is unlikely to be able to sneak back into camp, and treat his own wounds, and then put himself to sleep, without anyone noticing.
Of course, if Inaluct is to be believed then all of this is simply flavor text. Do realize what than means if it is true? It means that the feedback we get at the end of our phase is completely useless, since Nuke's story doesn't actually accurately portray the actions of the players. Thus something like this is kinda pointless:
However, so as to safeguard the group, I propose that Sir Slytherion be the one who leads the charge, with the hospitallier healing him. That way we can keep an eye on him. And by charge, I mean the next Challenge Phase.
If we can't reliably discern actual player's actions from flavor text, then having Sir Sytherion lead the charge won't do anything, since we can't trust that the feedback we get reflects anything that the players did, rather than just being flavor text.
Anyway the game that I signed up for should have been able to take place entirely IC. I don't want to play a game where we delve into pointless discussions about "flavor text". From an IC perspective there can be no doubt that Inaluct is an assassin, and because we are playing MRTQ and not regular mafia, I believe that is the best justification we can get.