Agreement, and lost bet.

"...I'm game," Izuku said after a moment.

"Good... Because we now have a bet you lost to settle, but we can do it in this dream," Momo grinned.

"Wha... Oh, right, the bet..." Izuku remembered.

"What bet?" Ochaco asked curiously, approaching while remaining unmindful of her nudity.

"Oh, Master agreed that tonight, after we made the offer, we'd go all the way," Momo smirked. "The difference is if you joined, he would wish for his inhibitions to be completely suspended for the duration."

"Oh... Wait, is that why I'm so calm and objective about this all?" Ochaco questioned. "My inhibitions are currently suspended?"

"Yep. You're completely honest with your own desires right now," Momo answered with a grin. "That's why your own nudity doesn't bother you. Technically, it never would have, but because you grew up in a society where clothing is the norm, you internalized the idea that nudity is wrong. That's the kind of thing that's disabled right now. In essence, you're your truest sexual self. Of course, objectively good inhibitions, like ones against doing anything like rape, or doing sexual things with underage people remain intact. Though you probably wouldn't want to do those things anyway."

"Certainly not!" Ochaco agreed.

"Now then, Master, shall we see how dominant you can really be with us without your inhibitions around?" Momo asked, raising her hand to snap her fingers eagerly.

Izuku gulped, before nodding, and readying himself. "I wish for the remainder of this dream, all societal inhibitions in me will be disabled."

"Granted!" Momo smiled, snapping her fingers.