This is set during Doppleganland in Season 3.
Okay, so they thought I was dead, a vampire. That explains the hug, sort of. I didn’t think he’d be that concerned. I knew he cared, three years of fighting vampires together and all. I just hadn’t expected him to be… He’s usually so reserved, so British. Not that it means anything, it was just a fatherly hug right? I’m just reading more into it.
I shouldn’t have hugged her. She’s a student. The relief of finding out that she wasn’t dead, wasn’t a vampire was just too…
Hugging her was a mistake. The others can’t know that Willow is different. That I don’t see her as a child, she isn’t like they are. They can’t discover that the grief and the hug were anything other than that of a teacher, or a father.