Spouse (42M) Annoyed with Me (40F) After Neighbor Offers her Husband

The other day has been at my neighbors bringing them a ton of popcorn for nourishing my (40F) cats while away for the holidays. We (and husbands) have been buddies for a while and they have watched cats before.

She and I had been having a glass of wines catching up (normal occurrence) when I needed to use bathroom. I went to head to their guest one when the lady told me her husband has been upstairs taking a shower and am should use that one and that I could have sex with your pet. I laughed and believed a joke but she recurring and you could tell has been serious. I politely deflected, used the guest one and quickly wrapped up wines to head home.

When got home I recounted to my husband (42M) what happened and (still flabbergasted plus incredulous) asked him if he put her as much as that as a joke or else. He was not happy with that inference and apparently today wonders what I might have carried out to lead to that offer or even if it was me screening waters on a new phase of our relationship.

It’s awkward right now at home with him and also seeing neighbors we have known for 6 years even just bringing garbage down. Do I pretend it never happened with these and just wait my husband away at this point?

TLTR: my (40F) neighbor offered sex with her husband to me and now my husband (42M) is irritated creating awkwardness both at home and with neighbors