Iroh might have been pointing to Zuko and saying 'that's my nephew!', but Wan was waving his own yin-yang shaped flag (in the red and gold colors of the fire nation) and pointing to Zuko and telling the people around him 'that's my boyfriend!'. He didn't have many excuses to make a big deal out of his and Zuko's relationship, but the kedan seemed just as excited for him as he was for Zuko himself. Some of the people Wan had done odd jobs for to earn the entrance fee were nearby and cheered for Zuko alongside Wan. They knew now what their grudgingly given money had been put toward and for them, it was seen as a worthy cause. Wan and Zuko were clearly honoring their traditions. That didn't prevent some suspicion from lingering, but it went a long way towards lessening it.