Well, first step in fixing a problem: Be sure you have a problem.
Question for the room: Please 'Informative' this post if you agree with Kiba that the way Hazō's agency is handled is damaging your enjoyment of the quest.
I'm sorry this this is a late response and a reply rather than an informative vote, but I did want to say something.
The most unpleasant regularly occurring thing in this quest is this cycle of:
1. The voters make a plan they think is reasonable.
2. The QMs decide it's some stupid shit.
3. The in-world quest reacts to the stupid shit and calls out the protagonist for doing stupid shit.
4. The players then have to put together a plan to have Hazou bow and scrape and apologize for doing stupid shit.
Maybe it doesn't happen as often as I think and it's just my perception... but to me it feels like it happens over and over. Often the consequences aren't actually that bad, but it's kind of stomach-wrenching to be called out in character for doing stupid shit and then have to make plans to grovel to fix it. Who enjoys that?
See, bad things happen in quests sometimes, but usually they happen because the players decided to take a risk and then the dice turn against them and the bad outcomes of the risk hit. Hey, that's the game.
I just want Hazou to stop doing stupid shit that's auto-fail. If players decide to do something that's stupid, at least fall back on the dice.
This thing with pissing off Naruto for instance... you decided to have Naruto react without even rolling. You could have decided...
Naruto is definitely not going to like this, but will Hazou realize that in time?
And then as Hazou starts his explanation, give him an Empathy roll to realize that Naruto is not reacting well. If Hazou succeeds, then give him a Deception roll to ABORT, ABORT and pretend he was "only joking" or "that's what I'd like to say if only it wasn't treason, hah-hah" or in some other way salvage the situation. hell, even if Hazou fails you could give him a Deception roll at a much higher difficulty to explain why the stupid shit he just said was totally being misunderstood.
Something like that, so that when the players decide to have Hazou do some risky social shit there's at least a chance to talk his way out of it.
EDIT: Or alternately, just disallow plans where Hazou is going to do auto-fail stupid shit and tell players to try again with a different vote.