As far as I can tell, Karma's judgement is more just for show, and not actually delving into her specific memories.
This line reveals a bit of that:
He was human, although the lacking lycanthropy did not register with Karma.
This means she should know that he was already transformed (perhaps under different circumstances, such as in his own lore), but her mind is being held back from that realization by the summoners.
The absurdity of the entire judgement makes it seem much more like a dream than anything.