This movie was pre-code so that would not have been an issue. I think the first response was spot on. As Beatrice's husband seem to feel, that crowd was full of wild young friends who probably were accustomed to passing each other around and having intimate relations like they had a drink or cigarette.
Being part of the group, Diana was suspected of being the same way. Beatrice definitely was. She admitted to her husband before they married that she had prior experiences; meaning sex and it was with others in their group. That's why he didn't want them around. They were all, except Diana, a bad influence.
Considering the time, it's very possible some of them had same-sex relationships but I don't think that was shown or suggested. At least I didn't notice it but, then again, I wouldn't because I neither look for nor am I interested to see anything like that.
Woman, man! That's the way it should be Tarzan. [Tarzan and his mate]
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