He does not wish to be perceived as a sex toy and wants to have a time without sex because of it, his sense of intimacy in general and physical intimacy especially is messed up due to his past. That does not mean he will never resolve these problems.
In the end, at the Graveyard (speaking of the Spawn route) he approaches you for it again and it seems largely fine. Though it is hinted at (if you jump through some loopholes and take him back to the brothel) that he still has a way to go to fully heal.
