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The apparent "final straw" was Bloomberg publishing emails from Mandelson to Epstein, written after the latter's conviction, saying how outrageous it was that he'd been convicted, and it never would have happened in the UK (never mind that Epstein did a plea deal to get an obscenely light sentence). Starmer already knew before appointing him that Mandelson had planned to stay in Epstein's apartment while Epstein was serving his sentence (Mandelson apparently told Starmer that he hadn't actually stayed there, so that was supposed to be alright. Whether he did stay there or not, I don't know). Starmer took Mandelson at his word, decided everything was fine, and appointed him. Which casts huge doubt on Starmer's judgement.

"The British" as in the people would be fine with everything Epstein-related published; Andrew is widely despised. "The crown" is embarrassed by him, so would like the whole thing to go away, but I don't think they want to do anything to cover it up, since that would probably come out, and actively covering it up would be worse still for "the crown".