the relevance of word choice on impressionable minds

Scene: Thursday. In the midst of casually teaching one of my classes.

Student A: Ya know, for a long time this semester, I assumed, you know . . . you know . . .
[this stammering continues for some time]
Student B: [to student A] Come on. Say it.
[I’m totally oblivious to what’s coming.]
Student A: Yeah, I thought for sure you were a lesbian.
Other Students: Me too.