Why is everyone in the Zetetic Council board showing up as Moderators?
Well, that would be because they are moderators of that board. I'm not entirely sure what you expected my answer to be.
Perhaps a clarification of their permissions profile will be of help: Within that board only, they have privileges that are slightly higher than those of regular users in other boards. For example, they can sticky/unsticky threads, move their own topics from that board to other boards, or add polls to threads.