Yeah they’re written by Crassius Curio (totally not self inserting themselves as Crantius Colto). Take a look at the dialogue section: https://en.m.uesp.net/wiki/Morrowind:Crassius_Curio
It’s openly known in house Hlaalu, too. Other members warn you but turn their heads to it.
Edit to add: Argonians in Morrowind are mostly slaves. This guy is likely fantasizing about being a slave owner and taking advantage of an argonian slave
I’m flipping between 2 and 6