She does react, but honestly I'm mostly disappointed in the player dialog. Your character as a Gith seems very out of place with how they react. They are clueless as to what is happening to them, but being a Gith, they should be able to understand and recognize what is going on. Your first interaction with Lae'zel should reflect this with Gith options of being able to explain to her what is going on (which will conversely explain it to the player), or at least affirming with her that both of you know what is happening and what is at stake.
agreed