Why 4 why do you have such disguising ideas
In canon that was when Kirito saved Asuna from Oberon/Sugou. Since he didn't save Asuna in Fuijno's version, that event probably never happened. The council is scanning Kirito's memories. But they are looking for information to the Seed so there is nothing about Kirito's blocked memories. I don't know what the time dilation has to do with anything.
Kirito did mention he fought Sugou in real life. Probably that scene outside the hospital happened like in canon did happen but Kirito didn't save Asuna in the virtual game with Kayaba's help.