Lily probably hears/is aware of alot of c3 propaganda due to having served the Alicein family for so long
OH ABSOLUTELY but he can't do anything about it because he serves the Alicein.
He has to keep his mouth shut about a mountain of things he'd really rather not be so quiet about to keep trouble off of his, his children's and the Alicein family's back and some of that backlash would be from the Alicein, via Mikado. Mikado doesn't believe that the peace between vampires and humans within the manor can be replicated in a broader, maybe even global scale. Plus now that we know Lily set him up to cheat (Not that Mikado cheating was any less his fault. It is. If he were less of a weak man Lily's plan would not have worked.) we know why and how he's scared of Lily, his sin and by extent likely most of the Servamps and subclass that break from the range of Lily's children so he wouldn't bother doing much to stop it outside of Lily subclass. Since they're, you know, children. And Mikado, despite being a pathetic sock of a man has nothing against children for what they are or who made them and I do believe he thinks all children should be raised with love and care. I know this bit is a little off target but he is pathetic but he is not heartless. If he were then Misono wouldn't have been raised with love and held so close to his heart. He'd be like an MC from those cookie-cutter webtoon comics.
ANYWAYS, Lily would not be able to do much if anything at all. We can all assume that the propaganda gets ridiculous too like. For all the majority of C3 workers who don't have the more insider knowledge of what the Servamps are like, they could think they're some harbingers of their sins. Like horsemen of the apocalypse but for sin.
Honestly I could absolutely see more of the uh. misguidedly faithful spewing shit like the Servamps being the reasons why there's sin in the world since I'm sure we all know sometimes people can jump to wild conclusions without evidence and just. Decide to die on those hills. Poor Lily hates hearing people who don't know anything dragging his sibling's names through the mud for no good or real reason. Even if he doesn't think it's possible or deserved for him to be loved, Lily thinks everyone should be and that rightfully includes vampires.
