In the context that when someone is the hinge in a social situation (meeting for lunch/dinner, giving someone a ride, etc) and the other partner is present; how much PDA is too much?

This came about after we met my wife's new partner for dinner to discuss boundaries, expectations, etc.

He asked about pet names and PDAs and I said it's fine with me and so did my wife. As we were leaving my wife opened up for a hug and he instead when in for a kiss and straight up copped a feel.

It was awkward because my wife was worried I would be offended and I just wanted to make sure she wasn't. In the end, I'm not bothered and wonder if I should be.

What's others takes on this, exempting triads, polycules, and threeway players?