[He does remember, but the spell of both his lives and their pros and cons is still hanging over him. He had been happy with Nephry in the false one so it was hard to want to believe his other life was the real one. But all the signs pointed to his real memories making the most logical sense and already enough time has passed for him to have started accepting the facts.

With a defeated breathe outward, it takes him a moment to reply.]

... Yeah, it's starting to come back. [Actually it already had all come back, and what he really meant was that he was beginning to accept his real memories. And after another moment to allow himself to reel in his thoughts, he clarifies a little, with a hint of his true cheerful humor in a mostly tired tone.] I'm the Great Peony of the Malkuth Empire. Though I'm still unsure of what all happened myself.

[In the end, he was separated from everyone one way or another and woke up by the lake's edge to find his memories flooding back. He hadn't made it back to House One yet, no.]