I don’t know whether Lloyd doesn’t understand or chooses not to see.
As a reader of his book I’ll opine that both can be true at the same time. This is just how the mind of Lloyd Evans works.
I think he genuinely feels stuck in that marriage when his real fantasy was to bang as many as he could, and now he’s trying to make up for lost time.
As he put it in his livestream, he’s trying to deal with his “fucked up situation” and he feels that Dijana’s limitations as a sexual device for him has sexually frustrated him. Whatever happens after that is completely not his fault.
Since he had admitted to 3-4 years of paying for sex, it probably didn’t immediately raise alarm bells regarding Thailand as he had already normalised the practice in his own head.
The reason why he’s so irritated at Kim and everyone else is because he got caught after the fact and he did not realise how bad of a look that was until pointed out to him. In true vintage Lloyd fashion, he’s pushing back on that as hard as he can without ever stopping to reflect on his actions, the Thailand sex trafficking angle and is working non-stop to save what has become his business.
I think he understands it now, and is intentionally choosing not to see.