It looks like a typical embracing-from-behind picture at first, then you notice where Camilla's right hand is. Going right for the goal there, huh Camilla. XD!
Been playing through this series, and they definitely want to fuck each other. The thing though is that the whole point of Bayonetta as a character is that literally everything she does is over the top sexual in some way.
Tamao deserved losing for not taking the initiative fast enough.
Should have done it before Nagisa completely fell for Shizuma.
Yaya too but she would probably still lose in the end.
I don't think you can really say who deserves what. Tamao did take initiative. She invited her to a romantic lunch date that Nagisa completely blew off to meet Shizuma, who acted creepy and intimidated her like usual.