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Jack is too surprised by Lula's belt trick to try and set the record straight, not that he has any idea how to do that in the first place. It's not so much that he thinks she'll react poorly, but more that even in 2016 it's hard to just blurt out, "I'm dating a dude," without at least wondering about possible ramifications.
It had hurt enough losing one horseman.
In retrospect, he supposes he could have simply gone with a, "Flattered, but taken," but he figures Daniel's tendency to overthink absolutely everything must have rubbed off on him or something because it doesn't occur to him until much later that he could have led with "taken" and approached "also, banging horseman number one" way later to at least avoid leading her on.
Instead he laughs, shocked and delighted that she was able to get his belt without him noticing, and rambles something about girls and trust. He's not lying, and he thinks maybe in another timeline he and Lula could have been something, but he's got Danny in this one and he can't even consider giving him up.
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He's riding the high of a successful finale and barely notices the countdown until her lips are on his. He pulls back and laughs, too giddy to be upset, and watches Daniel laugh at them and continue celebrating until Dylan signals their exit.
On their way back to their current safe house he has a moment alone with her and gives her a polite, "You're great but I'm taken" spiel that he admits to her he should have done earlier. He can see that she's a little embarrassed but otherwise takes it in stride, joking about who it could be and something about Merritt and daddy issues that makes him laugh.
When Daniel turns around to see what the fuss is about their eyes meet and Jack sees the littlest bit of hesitation there. He relaxes when Jack gives him a small wink, but Jack knows he'll need to approach this with at least a little bit of caution despite Daniel's good humor regarding Lula's crush the past few weeks.
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That night after knocking on Daniel's door Jack finds himself pulled into his room and pushed up against the wall, a much more welcome mouth fitting against his this time.
"It's not midnight, but I guess it'll have to do," Daniel states after finally allowing a pause. Jack grins, bringing him back for another kiss before letting it break again.
"Sorry about that. I explained a little on the way here. You know I was going to tell her when there was a second we weren't being chased down by maniacs. I didn't think she'd just go for it like that."
Daniel gives a small snicker and pushes his body closer, leaving Jack comfortably trapped between the door and Daniel's torso, arms resting on Daniel's shoulders as their foreheads pressed together.
"These walls aren't very thick. I bet she gets the idea tomorrow morning," Daniel says before pressing his mouth to Jack's again, a hand running up Jack's chest and the other gripping his hip, bringing them impossibly closer.
Jack manages to get out a lusty, "Danny!" against his mouth before words are too much work and all effort goes into seeing who can get the loudest reaction out of the other.
Danny wins.
