I read that as Kythie implying you should move to the hole she wanted to be used, rather than have you anal again.
My though process here, you can or not agree. "You know" -> this implies Champion knowledge not her wants, Now -> this implies that NOW you can do something and this implies change in previous state where you couldn't do it. Taking in consideration her quest -> Now champions knows he/she SHOULD'T use her pussy or you fail the quest - I read this sentance as after quest variant which should not be in game now - sure she wants you to lure you to play with her pussy -> but implication is nothing bad will happen which is not the case in current state of the game.
Where are you getting this text from?
I reverse engineered the game. You can "see" this scene yourself via manipulation of console into state that is impossible to have via play. Lossing either "detailed" virginity - looses generic virginity (at least in Kythie case).
Before and manipulation screenshot, save that already engaged with her before (so both anal and generic virginity is lost, manipulation to restore virginity but not anal virginity):
During the scene she looses manipulated virginity - she needs to be virgin but no longer anal virgin:
Next one goes into pussy variant: