How auntie "tasted" Ed's description—pretty sure she just did her research, got a basic description of Blackbeard and improvised the whole thing to psych them out...
"Knocking shop" means brothel. [Ed and Stede only had that one kiss, but there are some hints everyone else has been hooking up.]
I mean I'm pretty sure Stede would have shown up if Badminton hadn't intercepted him and hadn't threatened to kill him while triggering all his insecurities/fears about himself ruining everyone he touches and Stede was probably in a half panic, half fugue state after, but he could have told Ed, hey I have to do something about leaving my family instead of just running...