Basically, cognitive dissonance. They simply refuse to believe the truth, and make up their own fantasies in which everything is backwards from reality. It makes them feel like they have some power over their life, and/or that they’re special.

99% of the time people like this are just deeply freaked out at the idea of a cold uncaring universe with nobody in control.

I hate him saying “get your mind out of the gutter” as if even thinking about people who are gay is itself a perverted sexual act.

Gay people exist. Acknowledging this and discussing whether a piece of media is directed at them is not “mind in gutter” stuff.

I don’t want to go so far as to say this person is homophobic, but it sure does sound like some internalized homophobia, perhaps.