A dream about my friend cross-dressing

Details: Since my break with my ex I have been living with a friend, we have been close and best friends since childhood. Our relationship has been muddled since we started having mutual casual sex. Neither of us want to be a couple for many reasons; we both have been burned by relationships in the past. He is more jaded about attaining them then I am, and has massive trust issues with people, I do as well but to a much lesser extent. Yet he sometimes tries to act like a couple with me, and other times is blatantly cold.

The dream: It all started with me coming back early with my parents after some sort of event; when I opened the door to my home I looked up to see a guy in drag clinging onto the ceiling while wearing a primitive stone like mask. My folks didn't notice, I nearly screamed in fright but then realized it was my friend. When my parents asked what was wrong, I lied and said I stubbed my toe. My friend scuttled off into the bedroom to hide, I fallowed after and confronted him, he still had the mask on. That's when I found out he had been secretly cross dressing. I was fine with that and would keep it secret, he had to remain hidden until my parent's left. At one point he-with out my knowledge- got into the bed with me, but left before the morning.

After bidding my family goodbye the next day, he and I went out on a trip. We kind of cuddled on the bus until an ambulance went by, it was odd to me since it was dragging a dead body on the wheeled gurney. I went to the front of the bus to get a better look while my friend remained (and dressed in his regular clothes) seated. The body then started to fall apart, I went back to my seat to see my friend traumitized by the body where I was grossed out but ok with it.

He demanded comfort, and I did so. He then got angry about me not looking him in the eye whilst talking to him (this is an issue I have with him in my waking life too.) The dream ended about there.

This is just one possible interpretation, and if it does not sound right, please discard it:

I think part of you is not comfortable with the status of your "boy"friend, he is more of a friend than a boyfriend, and perhaps your mind translated that into man in drag. In your dream you are embarrassed about him in your parents presence, and perhaps in reality it might be less embarrassing to bring home to your parents a real boyfriend and not just a friend with benefits. Oh, sure you understand and commiserate, both in real life and in the dream. After all you both have been burned by relationships, and are dragging the corpse of those dead relationships behind you. You believe that you are more comfortable than him to look back at those relationships without being traumatized. You think you are ok with it. But are you really? You are unwilling to make eye contact, why? Because it is too emotionally difficult to do so? So perhaps you are not as ok as you think, and perhaps you are not more ok than him after all?