Regarding: "...Knights are a sovereign entity not subject to Papal authority in matters of governance."
- The situation was a 'both, and'. That is the religious vowed responsibility of the knights to the Holy See was not obviated by the sovereignty issues. Neither has the religious responsibilities to the Holy See dissolved any treaties or international agreements that the knights have with other secular governments.
- The expectation is that the religious reformation of the religious life of the vowed knights will have a bearing on the governance in both style and substance of the sovereignty;  very much like religious life of individuals have or could have a bearing on civil governments today.