I dont get the idea of an "undercover" cop. Its just ridiculous.
First of all, everything going on in being a dik is kinda "small"... Quinn and others are dealing some drugs, in so little amount its not even worth a monthly salary of a cop. The pink rose girls are smoking weed and do just a little bit of drugs, they are not even adictted. Only for some fun times here and there... (i dont see why its fun, but well, thats another case)
The "prostitution" is a small thing too, the girls are doing it freely. Nobody forced them. Of course its shady as fuck, especially from Burke... but never ever would any law enforcer start a undercover investigation for something like that. And on top... for everything we witnessed so far, Quinn and Burke wouldnt even go to jail.
Buddy is not a "big drug lord" either... he is a very small fish providing small amounts drugs for dealers like Quinn, which isnt much. And i dont think he is that well connected to be noticed by the cops either.
Than... Lily is YOUNG, very young. she is what? 22? 23 maybe? And she told the MC her goal is to become a docotr or nurse (dont remember exactly what it was, but one of those). The Pink Rose? Its just a fun Job for good money for her, an easy way to pay for college and her life for now. She made it clear that she will not do that after college is over.
So in the mind of some people around here, Lily is an undercover cop in an investigation that is already running for a year or even longer... fuck... they didnt even investigate that long in paplo escobar.
And that she said that MC should fall in love with her... come on, there is no "mystery" behind that, she loves to flirt and to have sex. Her job at the pink rose is a relationship killer of course. Do you really think you can have a healthy relationship while working as a stripper? She likes the MC, so much is clear. But its more likely that she already was in an relationship and made a bad experience with that. So she doesnt want to start another one. She likes to "roll" with the MC but doesnt want something serious and this is it. Well, of course she is not immune to getting feelings. And we already see how she is developing some feelings towards the MC (at her route)
The pink rose girls baught from vinny before, now from Quinn, cause Vinny is a douche. Thats all there is. If she would be a undercover cop she would try to get to "higher ranked" dealer, not taking the "lower" one... Vinny is standing over Quinn, Quinn only deals at college, Vinny is dealing outside of it... thats a whole other deal.
Of course, it COULD be that there is a whole HUGE Martin Scorsese Mafia-Gangster plot going on in the back but nothing so far goes in that direction. And it would feel very very awkward if DPC now starts something like that.
The whole plot with burke, Quinn, Vinny and so on is just a drama vehicle. A plot that "hovers" over the whole game of course, but seeing it from law enforcment perspective, there is nothing major going on, nothing that is worth to start any kind of investigation.
The only consequences for Burke, Quinn and some others so far would be "social work" and to be suspended from college work. Yeah... for the newspapers it would be a nice scandal maybe. But for the law more like a waste of time.