The problem is caused by a combination of extraversion and low social intelligence.
Extraversion isn’t the problem, and I didn’t get the sense that OP was saying all extraverted people are like this. But the problem is undoubtedly related to the boss’ extraversion
I don’t think many people had “a thing” for mermaids though. It was just another human creature with boobs. I don’t think most people thought about it any deeper than that