should I be upset? I have no idea how to react

My SO has a very sexual sense of humour and flirts with other men as a joke, him and my stepdad do it all the time. Anyway, we were on a night out and this gay guy comes up to him and asks if he's gay. I tell him he's my boyfriend and he genuinely doesn't believe me. He said 'I'm a faggot so I can generally tell who else is and I would put money on him being a fag' and I just kind of laughed. So to prove his point this guy kissed my boyfriend and cupped his balls!! We all laughed and I was uncomfortable. My SO thought it was hilarious. He went off to have a wee and the gay guy said to me 'hunny he's gay. And you can do so much better' laughed and walked off. My friend was furious on my behalf saying that was totally inappropriate. My SO thought it was funny and reminded me that he's kissed plenty of guys. Which is fine that's our sense of humour around here (military humour I guess) But two straight guys kissing having a laugh is different because there's no romantic attraction to the gender. That's like a guy kissing me in front of him. It's weird right? Should I be worried?
***can I just add that I know humour is different in different areas and stuff but most males around here have that sense of humour. My stepfather and his friends are like this too so I'm not worried about that. What worries me is the fact that that guy was actually gay and so that makes me uncomfortable as it would if a girl did it. It was more the fact that he laughed it off and didn't think of the fact I might have been uncomfortable or say 'woah that's inappropriate' to the guy. I don't know I just feel like the boundaries for him and boundaries for me are different. I would never allow that to happen the other way around. If it was a guy kissing and touching me he would lose his shit😒