This would certainly affect the reputation of all sects, but everyone expected that all infiltrators in the organization would be discovered and killed because only then would the sects be more secure and know that they were no longer in danger.
Once the tournaments ended with Serenity Sect's victory in tournaments between Soul Refinement and Realm of Emptiness realm warriors, Sword Sect's disciples tried, but only someone like Zhang Yi could win against mental energy cultivators in the same cultivation realm.
After that the sects began to investigate who the members of the soul-eaters organization were on the list that Zhang Yi gave, he himself was using the soul-searching technique to help Sword Sect elders finish the job faster.