I wouldn't exactly say that Haley was the instigator.
To me this is a clear example of a power figure taking advantage of someone in a subordinate position. In this case, even more reprehensible because of the age of the 'subordinate'. I say this as someone who has played at least one game where, as the teacher, I tried to bone every female student that interested me (not to mention my daughter, in that particular game).
I will add that the end of their conversation concludes with Haley telling the MC that when they 'get back', she will tell him more. So I believe that will be the actual continuation of this subplot, not the MC beating up on Klaus. He probably won't have the time to do that before they go back home anyways.