Though every faction was trying their best to ruin the Gracious Sword Sect's reputation, all this didn't really affect the sect from inside.
Although, the upper management did look into the incident and deaths due to the ambush during the beast tide.
The Sect Leader called the Grand Elder to the main hall along with many core elders, and both of them had a heated argument over this matter. No one wanted to take the blame but instead called themselves victims in this incident.
At first, they thought maybe this was done by a third party, who wanted to fish some benefits from the chaos in the Gracious Sword Sect. However, these thoughts were suppressed when the elders who were investigating the incident found clear-cut evidence that this was indeed done by some elders and disciples of their own sect.
Now, everyone was suspicious of each other. But the investigation wasn't over yet. Something weird was found out by the investigating elders which led to even more conflicts.