Just an additional opinion on the developments from your updates OP, two things spring to mind as I have some experience in the bdsm arena - firstly, just to say that in a sub context there can be additional humiliation by the fact that the person instructing you to do these degrading things is not attractive, thus can give the sub an extra bonus filthy buzz (in the mind as well as betwixt the buttocks).
Also can they feel more comfortable with this dynamic as it ensures a level of control remains with the sub as an unspoken “I wouldn’t be seen with you in my arm in public” so in the ‘real world’, the balance would be tipped in his favour.
Secondly, maybe he just finds hairy and butch women genuinely attractive but due to society/narc tendencies you mentioned means he wouldn’t want to reveal this by pursuing anything irl so keeps it as his ‘dirty secret’ while facing the world with a socially acceptable/desirable looking partner.
I would say I have several good gay friends and there’s no shortage whatsoever of married men they hook up with at gay spa/clubs/parks etc so if he was secretly gay, I’d be questioning why he’s talking about “pussy” with a woman and not “cock, ball, arse” with a bloke?
He could be closeted even to himself, but given his current antics, it’s not like he’s not indulging himself already in more curious ways than most so it’s be odd that he’s not just having gay sex if that’s what he wants?
Definitely easier to seek out a gay lay than nurture a Trunchbull Domme?