You're apply post-game knowledge to common folk.Yea as I said, it's mostly just one peculiarity that stood out in an otherwise enjoyable story. I do think it's more than just a simple issue of fantasy moralities though, as even in fantasy humans tends to react like well... humans. Though not identical, general moralities tend to apply.
There are no social medias or ability to "check your stats" for people around you. In small community gossips are shared constantly so everyone is "knowing" that you're some kind of black sheep, trying to learn truth-saying yet don't seems to be good at it. It's too late for them when they're discovering the truth
Overall - most truth-sayers would be perfect interrogators and counter-intelligence agents for local rulers. You would never dare to be rude with someone who can easily send you to jail, isn't it?
Most of "common" magic in this game is subtle so it would have no issues to incorporate in daily lives. Medieval times were a bit different from our - it wasn't strange to seek advice from priest before doing anything important and so witches&spellcasters could easily take this role. Only "greater magic" like teleportation, mind reading, healing, immortality, etc - would change human society notably.