James has been gaslighting Austin. Does a real friend tell you when you're acting like an ass? Of course. But they don't totally dismiss the cause of your reaction, the reasoning behind it. And they don't plow you over with damnation of your character and insist that you're wrong every 5 minutes while either glossing over or outright refusing to discuss the follies of your irritant.
Also, the "man to man" conversation that James made a show of wanting to have? He would have actually had it. For some reason, everyone is keen to call out Jenna on poisoning the well when it comes to James (yes, but she's right quite frankly.) Yet, over the last week we've literally seen James go to Bobby multiple times, Sherrie, Natasha multiple times, Jenna, FARRAH for goodness sakes when she was still there and in the bedroom after Janice had her nth row with Austin, literally everyone except Chloe (who he claims to be looking out for...) condemning Austin's behavior. James has spoken ill of Austin to the entire house. How is that friendship? It would be different if as a friend who presumably knows Austin a little better than some of the other hms , James made an attempt to provide insight into Austin and why he reacts the way he does. Not defend. Not even explain, just insight. But James literally doesn't care enough to be bothered. James knows Austin is popular and probably presumes he is close to if not just as popular as he is, so he has devised a way of sanctimoniously and platitudinously reprimanding and "guiding" Austin, so James can come out the better man. He's a weasel with no constitution.
Austin is temperamental, venomous hothead, before anyone remarks. However, what kind of friend takes those flaws and holds a magnifying glass up to them for everyone to see?