As someone who was involved, the NSB came in through the ICC and garage, upwards of 8 National Security Bureau were in with him. @SharpAlso was there and also witnessed it. Chlice did not come in alone. I had also brought in the KG to meet with a warplanner regarding a warplanning situation and announced my entry. Chlice from my knowledge didn't openly disrespect genwolf with insults, he rather acted arrogant and disrespectful with his tone and mannerisms. Genwolf confronted me and said that the NSB can't be disrespectful to him like that so we both agreed on a one rank demotion and I ordered Chlice to return. I also ordered the release of Otto von Licht as a show of good faith.
I thought we had solved this in-character to be honest as I punished him with genwolfs suggestion of a one rank demotion. I personally don't agree with a PK for this considering I had already punished him to genwolfs request.
I also think it's totally fine for a NSB CO to act a little arrogant, even towards the head of the entire military, just like how I expect a experienced veteran of the war effort to be arrogant and slightly disrespectful towards the state security apparatus that they see as power hungry overzealous police officers.
