You shouldn't make fun of someone's tastes.
Larry is listening to music that Tim thought he would like, through earphones.
Larry wants to tell Tim that he doesn't like his music.
Larry tells Tim he does not like the music, but respects his taste.
Larry calls the band Tim is listening to a swear word, and proceeds to make fun of it.
Larry and Tim move onto other music to explore together.
Larry find Tim very upset at him and refuses to talk to him.