I am all for safe hugs, but this doesn't sound safe. You were observant when you said it felt like a "relationship cuddle".

T hugs shouldn't involve playing with or stroking hair, lying across their laps and by no means are erections part of good therapy. If either of my male T's got an erection I think they would be mortified and excuse themselves for a few minutes.

I know that reactions are normal for guys, but it is how they handle it that matters. I even read online that there are grounding exercises for male T's to surpress their own sexual physical reactions.

Your T sounds like a creep, I'm sorry to say.