#eiru

Basically, the main gist of the sidequest is that Nagi and Fret are debating on how to imprint confidence onto Eiru, who’s suffering with his physical insecurities, and this is where we see the differences with Nagi and Fret's philosophies on life.

Fret's response is to tell Eiru to ignore the haters and even more so, ignore confronting the insecurities; life is better when you don't have to concern yourself with anything or try; don't take anything seriously. Nagi, however, believes that insecurities should be understood and harnessed so that they can ultimately be turned into a strength that can be used as a tool for success; accept your weaknesses and come to terms with them so that you can weaponize your strengths better.

On a surface level, these might read to be the same thing. Fret’s advice can be read positively as "don't let others judge you for something you can't control" and Fret certainly thinks so, hence why he thinks that he and Nagi are on the same page even though she disagrees.

However, when you read between the lines and think about it some more, there are notable implications that Fret's advice is more of a dismissive approach to dealing with emotional struggles as opposed to Nagi's own methodology. It’s no coincidence that Fret used to be a fan of the Eiji "the Prince" Oji in his ennui/apathy phase. The Prince in the original TWEWY was beloved for his “don’t give a damn attitude” and how he expressed that both in person and in his blog “F Everything.” Fret claims to have grown out of it but with certain reveals about his character later on, there are some implications that Fret latched onto the Prince and aspired to his attitude due to his own struggles with feeling genuine and wanting to embracing apathy instead.

However, if you recall in the original game, Neku and Joshua came around and helped the Prince sort out his own issues and in the process, helped him to become more genuine and true to himself in the process. With all of this in mind, you can interpret Fret’s response as him seeing the process of the Prince’s reconciliation with his genuine emotions happening in front of him and didn’t want to confront the possibility of that happening to him as well so he "grows out of it." It also acts as a neat parallel to Neku and his own thing with CAT. Whereas Neku latched onto his misinterpretation of CAT’s words in order to cope with his trauma, Fret turned away from the Prince changing so that he wouldn’t have to deal with his own trauma just yet.

To get back to the quest, if player had decided to choose Fret's philosophy, Eiru ends up doing just that, spinning Fret's stance on the situation into self-motivating positivity. However, there's a element of emotional responsibility lacking in Fret's way of processing struggles in that he doesn't seem to have the awareness to recognize the difference between overcoming adversity and just ignoring it (or maybe he does but refuses to confront that truth). In order for someone to truly not care what other people think, they need to do what Nagi suggested first, which is to find acceptance with their insecurities and build a stronger foundation for their character through that acceptance.

If the player chose Fret's approach to solving Eiru's issue, his dialogue afterwards shows how he feels about not having to face issues head on, with Nagi lamenting that her approach was not used despite being glad that Eiru's mood was visibily improved.

I also really like this moment here for how it subtly foreshadows what caused Fret’s attitude and way of thinking to happen in the first place.

Stuff like this is why I always tend to roll my eyes whenever I hear the claim that "Nagi is mean to Fret for no reason" when moments like these show why she acts the way she does towards him: their philosophies on life are complete polar opposites.

In Nagi’s eyes, Fret acting the way he did screamed to her that he seemingly had no regard for how his attitude and actions towards others made other people feel in service of his own self-interest and she fundamentally cannot get along with other people of that nature, as shown with how she dismisses Motoi entirely off the bat when the crew first meets him because she could tell that there was something off about his attitude. However, once it was revealed that Fret’s attitude was due to him trying to unhealthily cope with his trauma and not because he was seemingly unconcerned for the feelings of others, she’s far more understandable towards him and empathizes with his grief.

That’s when Nagi learns to understand that she does not need to dismiss people right away and that they, like Fret, might be going through struggles of their own and trying to cope with it via other means, even if she doesn’t agree with it at first. Hence the friendship they start up at the end of the convo.