Orb could've hugged the dog, if she could've actually, physically hugged the dog. Which, at present, wasn't possible, because she was completely tangled in Loki at that point.
"You're -- hugging me? I think that's pretty evident. She doesn't really think you're having an affair with me."
Not that Orb actually knew that, but she assumed that if Astrid thought so, she wouldn't talk to her anymore.