You reach the front of the line.

In a shorter period of time than you expected, you reach the front of the line, the sun still partially visible on the horizon. The moment you take your spot at the guards front, you are met with questioning looks. A few moments later, the plated man speaks up. "Is there a reason you are waiting in line, sir?"

The question is a bit weird, you're clearly waiting to be let in. But just as you're about to say this, Your new friend speaks on your behalf. " 'e's not one of the nobles, Phillip. 'e's some type of traveler."

The guard looks down at you, from the inside of his muzzled head piece. "You're an adventurer, sir? You look handsome enough to be a noble. A royal, even." He shakes his head, as if to clear it. "Sorry, sir. we'll get accommodations set up for you. How long will you be staying in the city for?" He asks in a subservient tone. The other chimes in, "The nobility district has a few inns with a open room or two. We'll write a letter for you, sir."

It's clear that this city reveres humans, or at least fears their power or influence. You could take advantage of this, and stay at the lodgings they are willing to provide for you, or you could stay with your caprine friend. The lodgings would mean you could explore a more elegant part of the city, most likely, while staying with a merchant in his house would allow for more exploration, you assertion.