They remember the calamity that happened, they just cant remember what the faces of the adventurers who helped with the battle of Cartneau. As Momodi put it, it's like they are standing in front of a brilliant white like and so their faces are blacked out. (Which btw gets resolved for the 1.0 Legacy Players at the end of 2.0 Everyone but 2 people who had remembered them during the story finally remembers them when they're leaving the Praetoreum after defeating Gaius). It was caused to Louisouix flinging those said adventurers into the future basically (or time rift for 5 years) and it was a bit product if said spell.