I posted this on the other side and felt that it would be appropriate here as well.
Lois hugging Lana or shouldn’t be hugging Lana. Come on, this is Alt Lois and she doesn’t necessarily have all of canon Lois’ traits. Lois is a few years older than Lana and has been working for a great metropolitan newspaper. Lois now knows just what she has in Clark. She knows that she has won the big lottery. She’s the one with the big Kahuna. Why shouldn’t she be compassionate to Lana, the loser?
At this point Lana and Clark were boyfriend/girlfriend, not engaged so it was not as serious a relationship. Note how quickly in Tempus Anyone she threw him over and at that point they *were* engaged.
Second point, this is NOT the Smallville Pete Ross. This is the comic universe blond, blue eyed Pete. Lana is surprised and pleased to hear that he’s been carrying a torch for her for years. She knows Pete almost as well as she knows Clark and likes him. Clark and Pete had been best friends for as long as she can remember and she couldn’t help interacting with him because they were both associated with Clark.
Another thing, this is a younger Lana than the one we saw in Tempus Anyone. She isn't frantic about planning a wedding. That undoubtedly wasn't the best time for Lois to show up.
Actually, deep down, she realizes that Clark hit the nail on the head. She knew that ultimately she never would have been happy with him because other than the security of being married she would have been constantly fighting with him about using his powers, it had already been happening after all. She is pleased that Lois and Clark are willing to help facilitate a relationship with Pete.
