@TheUnexpectedPickle
This person appears to have just been standing there with their penis out- and apparently then jokingly said that they'd taken their pants off because they were hot.
No, that’s not what happened at all. You are mixing up two separate incidents.
The underwear comment was alleged to have happened when everyone was fully clothed not in the changing room on a very hot day. But only one person heard it and the TW denies it happening. The person who heard it said it was not sexual and at no time did she feel it was a sexual comment. The Tribunal found that it had happened, so it happened.
The second incident was the TWs manager received a concern from one colleague that the TW had been “naked from the waist down in the changing room” (note, not seen naked from the waist down, and no mention of a penis). The Tribunal did not address whether this happened or not, so it is up to interpretation.