Everything looks to be working as intended except Weligon Steelherder should be giving most of those starting noob quests (pearls of odus, diseased sharks, etc) at amiable or better (the starting faction level for Paladins of Prexus). Fixed, pending update on that.
Inte Akera may have recognized you to be a Deepwater Knight, but to him you were no hero or paragon of virtue worthy of his blade.
You indeed have a leg up on Deepwater faction over all other Paladins, but in no way shape or form are you automatically a hero until you've proven yourself though good deeds to the temple.
Luckily it sounds like Sirken gave you your quest item back from your failed quest and you can return to Intel after you've proven yourself more.
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