Knight to strong for medusa so she has to bushwhack him when his pants are down.
Medusa bursts into bathhouse and turns the men into stone while they're bathing naked.
A few generations of Medusa's go by and their blood is eventually muddied by intermixing with humans.
The dicks on all the statues are missing by now as over the years there are various reasons. Accidentally bumping into it while carrying something, weathered in the yard, etc..
One of them has the bright idea to chisel the squire statue to look female so it doesn't look like a male statue with a broken off dick. Statue turns out pretty good, the other medusas figure it'll be a nice project to waste time on over the years.
Eventually one of the Medusa acquires a magic rod from a wizard that turns stone back into flesh because she thought it would be a really good way to keep meat fresh, just stock up a bunch of stone animals.
Tried the rod on one of the statues one day out of curiosity and the squire comes back to life as the girl he was carved to look like.
Turns him back into stone and goes to show the others the discovery.
Shows them using the knight this time.
Knight has quick reflexes and knows how to fight medusas. Dodges everything and manages to escape the camp. Knight statue was only half finished, they only got around to carving the lower half. Meh, he'll figure it out.
Recover from the escapade and show colony the squire statue instead this time...