Oh, Tidus caught that look alright. And then he's open-mouthed, flabbergasted, letting out nothing but air in the sounds he makes. Thankfully doing better once he has the chance to talk.

"Right, listen to Kitty!" Hello, yes, just let Tidus motion with both hands over to the smart one here. "I wasn't calling you dumb! I thought you were doing a...thing! A mistranslation!"

Because Tidus doesn't know how else to describe it, that earlier bumbling, but he doesn't want to accidentally insult Inigo a second (or third??) time here; trying his best to sound as sincere as he can.