The scene was played pretty down the middle, but Ethan's reaction, (sick) and his "bro code" pre amble, seems to hint at the intimate past, they were in college and roommates.
If you were just reading the transcript, you would assume he was serious, Cameron plays that narcissistic type who wants to be holding power over or seducing someone all the time, even without the actual sex, but it was still played very straight for a bro dude frat joke. I know a lot of guys exactly like him, always selling you, which is a part of seduction on some level.
Overall, I see that criticism that says this season is lighter and less interested in complex questioning of norms and power is on point. This plays closer to reality TV tropes than what was a complex look at power, privilege and vulnerability in the first season.
Also, the idea that people could solve all these issues by merely talking is well taken, on two fronts, one is that Roger Ebert used that phrase to describe "idiot plots"", where the story would not exist if people did what would be much more reasonable and talk, rather than keep absurd or extreme secrets, rely on spying and misunderstood circumstances, all common tropes in romantic comedies, which this White Lotus is veering close to. Though, what I am describing what apply to a lot of Shakspeare's romantic comedies too.
Second, is that many people DON'T talk, because of the difficulty of direct communication, and the potential conflict it can bring. I like to think I am 100% willing and able to have vulnerable and direct convos, and I usually am, but im not 100%. And many people do rely on "gut feelings", or irrational conspiracies even in the relatively mundane scenarios about a personal relationship.
I have met so many women, and men too, who are like masters in social media surveillance, who absolutely do not use those skills in any real or constructive way. And who can construct narratives out of false or misleading information.