Yes. She didn't want Alain to approach Chiyo when their daughter was unlikely to react well. As soon as she saw Alain, she got the girls to a different room (and Chiyo and Riko evesdropped - Chiyo was told Alain's name by her uncles, and freaked out).

Kanon didn't know, but it didn't surprise her. Alain was quick to realize that the mystery person was Kanon's daughter. And later that said child might be part Ganma. (He was actually kind of pleased, because despite Kanon being turned into a human again, her heart was still with the Ganma. Or something like that.)