1. Nothing sketchy, they're just incompetent. The only group actively leading a legitimately run search is the Guard.

2. No one really knows. It was like night and day. One moment, she was fine, the next, she began to withdraw and act bizarre. One particular individual will say that the Princess visits the "lesser folk" in the prison system as acts of charity, to spread will -- leaving the Brig is the only time she seemed sad. But that individual isn't entirely sure if that was why she disappeared. The Brig isn't exactly a fun place to be, after all.