Final Fantasy VII’s Wall Market sequence requires Cloud to infiltrate Don Corneo’s mansion disguised as a woman to rescue Tifa. The disguise quality determines which girl Corneo selects — and the best disguise requires visiting the Honey Bee Inn, a brothel in the lower plate that most players enter once and immediately want to leave.
The Honey Bee Inn contains multiple rooms with optional scenes that range from comedic to deeply uncomfortable. The ‘&& Room’ requires Cloud to enter a bathtub with a group of men, triggering a scene where they help him relax and apply makeup — played for awkward comedy, but written with more care than its reputation suggests.
The cross-dressing sequence was cited by director Yoshinori Kitase as deliberately designed to humanise Cloud — to show a character who projects warrior stoicism behaving with vulnerability and discomfort in a social situation he cannot fight his way out of. It is not played as humiliation. Cloud does it willingly, competently, and succeeds.
The Remake expands this sequence significantly. Don Corneo’s audition is staged as a full performance. The Honey Bee Inn becomes a glittering cabaret. The sequence that was five minutes of overhead JRPG sprites became a twenty-minute emotional centrepiece that received near-universal praise — one of the strongest arguments that the original’s intent was always there, waiting for the technology to express it.

Found this by accident on my third run. Came here to understand what I was actually looking at. Great write-up.
Saved this article for my gaming reference folder. Essential reading for anyone serious about this game.