Instant reaction? Bullshit! Second reaction, he has no reason to disbelieve that, since this place is dragging in people from different worlds. Plus the other man said he had magic in his world, so...

"We're not friends." Even if that's the 'generic' thing to say for people of Hythlodaeus' ilk, Bakugo doesn't like people just randomly slapping that label on him. It takes way more than that to develop a friendship.

"That's what being a hero means." A year ago, he would've demanded fame, basking in the praise lauded to him for his power. But a year of experience has tempered his pride and re-contextualized what it means to be a hero.

He still wants people to acknowledge his success though...