Inoda drank a potion that was supposed to recover his health but it massively increased his stats. It is implied Yui helped Inoda. Liz put a curse on him if his stats are lower than hers he has to obey her but with his increased stats she has to obey him. Only for an hour until the potion effect wears off. He got a succubus outfit from the earlier quest with Yui. She puts on the outfit and it changes her class, appearance, and the outfit makes Inoda's thoughts go to Liz so she can't tell if she is horny or it is Inoda. Then the scene ends with Liz knowing she has no chance with Kirito so she will probably go to Inoda now.
In short, A LOT OF BS MADE THIS SCENE HAPPEN. The memory rewrite is not so bad by comparison now.