I do wonder if in this example the party actually detected the intended propoganda, versus if they just were in a campaign doing what they thought good characters would do in a situation. If not it’s so much more telling, as the best way to tell if you are standing on principles or just biased propoganda, is if you would make the same judgments if the names were hidden or even reversed. Even more ironic because obviously the DM controls the facts of the fictional world. Literally likely to not know or leave out details that hurt his case.