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The more I think about it, the more subtle references to Arthurian legend are actually IN SatBK. One of the SMALLEST references is during Gawain's defeat, when he tries to behead himself. This is likely a reference to Gawain and the Green Knight. The Green Knight offers to get hit with a VERY nice axe, but in return, whatever blow was dealt to him will be returned the next year (so, if Gawain and lightly tapped him on the arm, Gawain would get a light tap on the arm in response). Gawain beheads the Green Knight, hoping it'll kill him, but the Green Knight just says that he'll see Gawain next year, picks up his head, and walks out.
Next year comes, and the Green Knight disguises himself, with Gawain proving himself as strong-willed, noble, and honest to the disguised Green Knight. This ends up working in Gawain’s favor, since instead of getting beheaded, he only gets a small tap on the neck from the axe. Just like where Galatine was positioned in the cutscene before Sonic took it away.
Gotta love SatBK's references.