I said that the only problems is with your client's failure to patch itself. This seems to be an issue with the server side, I am not sure why it is a particular problem with yours.

The Unable to detect proxy settings error in the launcher.log is triggered because you have no proxy settings. No settings = nothing to detect.

I'm not sure what entirely is the issue, so contact support and ask them.
http://www.spiralknights.com/support/#requests