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Contrary to their belief, Cedric actually didn't see through the councillors' disguises.
As broken and overpowered as his eyes were, they still had limitations...for now, at least. And one of those prevents him from seeing through, which means he doesn't completely understand.
The transformation gel that Councillor Urek used to mask not only their faces and physique but also their energy signatures was something that Cedric had never encountered before. He doesn't understand how it works, and he also doesn't know that it exists; therefore, he couldn't see through it.
Nevertheless, he's not an idiot. The clues are all there; he'd be stupid to not notice them when they're so obvious.
First of all, the councillors might have disguised their faces, bodies, and energy signatures, but they didn't do much to hide their actual Life Evolution Realms.
