Wtf is going on I’m confused are they talking or not?

It's the incident from Kang's point of view. He expected Ahn to be as bold as he'd been the first time and he was going to accept it and engage in a (frequent) sexual relationship with him, but he didn't expect Ahn to have feelings for him, and that threw him off. It's not like he doesn't like it, but for someone who prides himself in reading people, he was wrong. So the conversation is what should have been if he'd understood Ahn correctly.

Thank uuu