[[ No, actually.
They don’t know the truth. The villagers were only told that Itachi helped during the war. and by this reason alone he should be considered a good person. I will show you the snippet. I do agree– it’s unfair. The villagers don’t even get to ask how it doesn’t make sense that Itachi would suddenly turn “good”, they’re just supposed to believe Naruto at face value.

They word it like admitting the coup d’etat would somehow sully the Uchiha name, not even mentioning the fact that the village worked to get the Uchiha killed.
Also “there was no one that doubted Naruto.” It makes literally 0 sense that Itachi, an S-rank criminal, should have his name cleared on Naruto’s word alone. So you’re telling me a mass murderer who killed all of his own family just decided to cozy up to Naruto and help during the war? But it’s Naruto who’s saying it, why doubt him?? kljsdfklflkfll.
Itachi didn’t want any sort of pardon. It’s Sasuke who deserved a much better pardon instead.
But we can’t have anything coming out that makes the village look bad. ]]
