First time I saw this scene, I was like “whoa, totally looks like Xena is going for a kiss there”. Then I was like “wait, Xena doesn’t really do the face-to-face hugs.”
Then I figured that this is Hudson playing Xena. So she probably played the hug the way she thought Xena would hug Gabrielle.
I always loved the Xena in Callisto’s body episodes.