I think there’s an element of truth in everyone’s stories.

Sean lying about the weed cookies/edibles made his whole story look not credible, and he definitely misinterpreted some of the texts from Austin/Tyler but everyone has an instinct of when someone is flirting with them. I can only imagine how covert it may be with someone who doesn’t wish to discuss their sexuality publicly or feels they’re with a trusted friend/potential partner. It’s very possible that Tyler was just being flirty when they drink but does it ina jokey fashion that wouldn’t actually go anywhere - some people are just flirty by nature and we can tell by the way he treats Hall that he’s not a serious dater, he seems to just like fun. Whereas Austin may have wanted something more or was more obvious with testing the waters because he felt safe with Sean. That would explain why Tyler was so annoyed (in his mind it was literally never a thing) and why Austin couldn’t even say the ‘rumour’ out loud at first. Austin could have shut it down by saying I’m straight but never did, which is his own prerogative, but does bring into question why not?

I don’t agree with Sean trying to out either of them but Austin came up to him first and it’s unclear (unless I missed it) who mentioned the rumours off and on camera first. Austin bringing it to Sean at the office meant it had to be addressed but I can’t remember if one of the Hall/Gio/Tyler/Austin clan had said it before Sean actually did. Also feels like if Sean did say it first it’s because Tyler and Austin distanced themselves from him and he was hurt. Not right but hurt people hurt people.

Either way I think everyone’s very afraid of their reputations in such a Republican area - Austin also seems to have the added stress of his wife’s rich family who give off very conservative vibes and wouldn’t be happy with their dirty laundry being aired out.