A CONNECTICUT YANKEE IN KING ARTHUR'S COURT

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Below is an excerpt from Mark Twain’s A CONNECTICUT YANKEE IN KING ARTHUR'S COURT.

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There was an unpleasant little episode that day, which for reasons of state I struck out of my priest's report. You will have noticed that Garry was doing some great fighting in the engagement. When I say Garry I mean Sir Gareth.

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Question 1: Right before, there comes a passage that describes the successive victories of Sir Gareth.

“You will have noticed that ~~ “.

Does this mean that “I guess that you must have noticed that ~~”, refers to the past time events?

In the context, I guess there can be no other understanding of this sentence, but “will have PP” referring to the past events is quite unfamiliar to me. I need some native speaker’s guidance.

Question 2: A local translator translated "which for reasons of state I struck out of my priest's report" to be of the meaning that [because of "an unpleasant little episode that day", the writer was not able to finish reading the report]. I guess it sure is a mistranslation. Because "which" here refers to "an unpleasant little episode that day", so it means that the writer took the episode out of the report. Am I understanding correctly?

Following is the full excerpt:

And he had a good knack at getting in the
complimentary thing here and there about a knight that was likely
to advertise--no, I mean a knight that had influence; and he also
had a neat gift of exaggeration, for in his time he had kept door
for a pious hermit who lived in a sty and worked miracles.

Of course this novice's report lacked whoop and crash and lurid
description, and therefore wanted the true ring; but its antique
wording was quaint and sweet and simple, and full of the fragrances
and flavors of the time, and these little merits made up in a measure
for its more important lacks. Here is an extract from it:
Then Sir Brian de les Isles and Grummore Grummorsum,
knights of the castle, encountered with Sir Aglovale and
Sir Tor, and Sir Tor smote down Sir Grummore Grummorsum
to the earth. Then came Sir Carados of the dolorous
tower, and Sir Turquine, knights of the castle, and
there encountered with them Sir Percivale de Galis
and Sir Lamorak de Galis, that were two brethren, and
there encountered Sir Percivale with Sir Carados, and
either brake their spears unto their hands, and then
Sir Turquine with Sir Lamorak, and either of them smote
down other, horse and all, to the earth, and either
parties rescued other and horsed them again. And Sir
Arnold, and Sir Gauter, knights of the castle,
encountered with Sir Brandiles and Sir Kay, and these
four knights encountered mightily, and brake their
spears to their hands. Then came Sir Pertolope from
the castle, and there encountered with him Sir Lionel,
and there Sir Pertolope the green knight smote down Sir
Lionel, brother to Sir Launcelot. All this was marked
by noble heralds, who bare him best, and their names.
Then Sir Bleobaris brake his spear upon Sir Gareth,
but of that stroke Sir Bleobaris fell to the earth.
When Sir Galihodin saw that, he bad Sir Gareth keep him,
and Sir Gareth smote him to the earth. Then Sir Galihud
gat a spear to avenge his brother, and in the same wise
Sir Gareth served him, and Sir Dinadan and his brother
La Cote Male Taile, and Sir Sagramore le Disirous, and
Sir Dodinas le Savage; all these he bare down with one
spear. When King Aswisance of Ireland saw Sir Gareth
fare so he marvelled what he might be, that one time
seemed green, and another time, at his again coming,
he seemed blue. And thus at every course that he rode
to and fro he changed his color, so that there might
neither king nor knight have ready cognizance of him.
Then Sir Agwisance the King of Ireland encountered
with Sir Gareth, and there Sir Gareth smote him from
his horse, saddle and all. And then came King Carados
of Scotland, and Sir Gareth smote him down horse and
man. And in the same wise he served King Uriens of the
land of Gore. And then there came in Sir Bagdemagus,
and Sir Gareth smote him down horse and man to the
earth. And Bagdemagus's son Meliganus brake a spear
upon Sir Gareth mightily and knightly. And then Sir
Galahault the noble prince cried on high, Knight with
the many colors, well hast thou justed; now make thee
ready that I may just with thee. Sir Gareth heard him,
and he gat a great spear, and so they encountered
together, and there the prince brake his spear; but Sir
Gareth smote him upon the left side of the helm, that
he reeled here and there, and he had fallen down had not
his men recovered him. Truly, said King Arthur, that
knight with the many colors is a good knight. Wherefore
the king called unto him Sir Launcelot, and prayed him
to encounter with that knight. Sir, said Launcelot, I
may as well find in my heart for to forbear him at
this time, for he hath had travail enough this day, and
when a good knight doth so well upon some day, it is
no good knight's part to let him of his worship, and,
namely, when he seeth a knight hath done so great
labour; for peradventure, said Sir Launcelot, his
quarrel is here this day, and peradventure he is best
beloved with this lady of all that be here, for I see
well he paineth himself and enforceth him to do great
deeds, and therefore, said Sir Launcelot, as for me,
this day he shall have the honour; though it lay in my
power to put him from it, I would not.

There was an unpleasant little episode that day, which for reasons
of state I struck out of my priest's report. You will have noticed
that Garry was doing some great fighting in the engagement. When
I say Garry I mean Sir Gareth.