How's it been since, did you manage to talk to him about it?

I don't see any big red flags, unless I'm missing something. He told you he felt protective towards you, that doesn't necessarily seem unprofessional to me. Has he disclosed any other feelings? It really depends on how the guy works. Some therapists won't disclose anything and some talk a lot about themselves. If he continues to talk about how he feels, then that's not good but it sounds as though you're feeling a little uncomfortable about your feelings towards him??

Also, I don't understand the hugging thing. If he told you he's not a hugger but starts to initiate hugs, that's a big red flag for sure but otherwise I guess he was simply discussing his boundaries with you.

You really need to talk to him about it, then you gauge how well you can work together, from his reaction.