It's made clear in the game that Laguna, Kiros, and Ward are all aware of Squall's parentage, specifically if you talk to them on the Ragnarok before beginning to the assault on Lunatic Pandora. Laguna tells Squall that they need to talk when it's all over. Kiros tells Squall it's a good thing he looks like his mother. Ward does his little silent thing, and Kiros translate to something like, "Good thing you don't look like your father." They all know that Laguna is Squall's father. My only guess is that they do not wish to add the emotional burden of telling Squall outright to everything he already has to deal with (i.e. saving the world).




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