I read the dialogues again and they don't seem like flashback, I think this is the first time nanjo came to his place too and the whole place looks way more clean and organized then what we saw in last few chapters. I have no idea how everyone is saying this is flashback when what he is saying is about the events that happened recently.
Nanjo was in a tank top because he came in a hurry cuz he got a call from the security that a drunk man was causing problems and while mok was admitted maybe he went home and changed into a shirt that's what we are seeing right now. As for the clean house we saw how his friends came and cleaned the house right?

He was wearing a tank top throughout the whole car ride but switched to a shirt when he was kissing.
Yeah ml is hallucinating he needs help like right now.