It's in the past, before Eve lost his memories. The episode is the continuation of Adam exploring his missing past memories
This is the same timeline as when he told Eve he wouldn’t kiss him if he tried to hurt Isaiah.
In episode 29, Adam goes to Isaiah to act on the previous conversation regarding Adam's missing memories. So the last episode of season 1, takes place in the past (in a simulation) in order to figure out what happened. Meaning episode 31 is still taking place in the past, and therefore Eve has never been given the deal with the kiss, as is seen in the present
Adam is about to cuss him tf out lol. Didn’t he tell you last time that if you act out you won’t get kisses???