Hmm I havent done that encounter in a while. Last patch I couldnt play because of a bug.
I dont recall him automaticly knowing about the weapon, is that new?
He doesnt know you have it if you dont tell him
This is not correct.
If you let Laezel speak, for instance, and you encourage her to tell the truth:
He says something along the lines of, "Wait, you were on the ship. That means you have the weapon."
To which, Laezel responds with something like, "Stand down, Knight. I do not have that which you seek."
These are not exact quotes, just off the top of my head.
