hmmm I thought the sis was gay because in the first chapter wasn't she gonna do it with someone?
Oh well, maybe the author forgot after 2 years and 5 months
Well, first they just put on cosplay costumes and the 2 MCs thought that they would do "other things".
Second, dunno, the author just played with the "in love with her older sister" trope. You can interpretet it this way, that she backed out, because her older sister loved er as just a sister anyway.