Hi Purjo,
I can not say what your experience specifically relates to, although, I can be confident saying that you are moving through something, and just stay with your practice. Try and refrain from itching, if you experience the urge during exercises. Let the energy move as it does, without interfering physically, or, mentally for that matter. Keep your focus, go into the emptiness.
The lotus , or incense fragrance at the retreat is related to spiritual energy, or spiritual presence, in relation to doing healing work. Usually it is most prevalent, after group healings, although it is certainly possible in one's own self practice.
Love,
gallen