Yeah, the only way this makes sense is if Yuzu somehow interpreted those eyes and the smooch approach as more super-best-friend stuff. Which, fair, considering from her point of view the name of the series is "Our Yuri never started because I was rejected back in middle school". I honestly feel like the other series with the vivid rejection dream fueling a character resigning themselves to not pushing things was more justified than this, but I'm not gonna call either outside the boundaries of human behaviour. People draw wrong conclusions. People fixate on notions that aren't grounded in fact. People fail to just have candid conversations to clear the air all the time.
We can only hope that Minami has the resolve to make Yuzu articulate her misgivings here.