What type of cuddles were? I’m super close to my dad and affectionate with him but for me it’s normal idk probably it’s nothing,it’s normal to have a good dad-daughter relationship, nothing has to be sexual or anything. I feel like nowadays all type of affection it’s considered weird or sexual when it isn’t ,so don’t overthink too much, remember at the end of the day it’s his daughter and if she doesn’t act different, or scared of him or obviously if you don’t see “explicit things” probably it’s just normal affection.
I think the odd thing about this is that they pulled away and pretended like they weren't. Have you noticed anything else like this?
Wouldn’t it be his child if it’s your step daughter?