The Bures metric and the associated Bures-Hall measure is arguably the best choice for studying the spectrum of the quantum mechanical density matrix with no apriori knowledge of the system. We investigate the probability of a gap in the spectrum of this model, either at the bottom [0, s) or at the top (s, 1], utilising the connection of this Pfaffian point-process with the allied problem in the determinantal point-process of the two-dimensional Cauchy-Laguerre bi-orthogonal polynomial system, now deformed with two variables s, t. To this end we develop new general results about Cauchy bi-orthogonal polynomial system for a more general class of weights than the Laguerre densities: in particular a new Christoffel-Darboux formula, reproducing kernels and differential equations for the polynomials and their associated functions. This system is most simply expressed as rank-3 matrix variables and possesses an associated cubic bilinear form. Furthermore under specialisation to truncated Laguerre type densities for the weight, of direct relevance to the Cauchy-Laguerre system, we construct a closed system of constrained, nonlinear differential equations in two deformation variables s, t, and observe that the recurrence, spectral and deformation derivative structures form a compatible and integrable triplet of Lax equations.