Cuddling without sex?

OK, crap...
It took me a while to figure this one one.  That was TOUGH...
It didn't make sense for a long time.  I had to read the question several times and then finally it hit me...
You write, " had a small falling out due to him not wanting to progress the relationship as I did"

A-HA!!!  Now I get it.  His behavior is perfectly logical.

You describe a small falling out, but I suspect that you are not describing the situation very accurately.  Whatever happened, it led to you not seeing each other for ALMOST 2 MONTHS.  In other words, that "small falling out" darn near ended your relationship completely.  It's a minor miracle that you two got back together in the same bed at all.
It must have been a major blowout to cause a lack of physical presence for almost 2 months.  So it was SERIOUS conflict, not just a "small falling out".

Now that we have that straight...what was the root of the problem?  The root of the problem is that you were wanting to progress the relationship, and he wasn't ready for that yet.  But wait a minute!!!  You start by saying you were dating for a couple of months and had sex a few times.  So, you were barely at the point where you might consider this a boyfriend/girlfriend thing.  I mean, you were dating, but it wasn't even that serious yet.  And yet, you are pressuring him to commit right away.  WOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!

After a few dates over a few months, if a girlfriend is pressuring me for commitment based on barely even starting to get to know each other...
I am running away, fast.  Most men would.  Your guy is no different.  He reacted pretty predictably, leading to a "small falling out" as you hilariously under-state the matter...

Lady, I am surprised that he allowed you back into his life at all.  He already knows you are desperate, and that a relationship with you will be a huge challenge, at best.  You say he's naked in bed with you but not initiating sex or even initiating kissing.  That sounded really weird to me at first, like WTF, OVER???  It's not normal guy behavior at all.

But after a while it sunk in...he is totally freaked the f*ck out now.  No, I'm not guessing here.  You scared the crap out of him by pushing him way too hard, way too fast.  Now he's afraid to be assertive with you at all, for fear that you will use that as leverage to try to force him into something that he's not ready for.

In short, you are a frenemy now.  He still likes you and he obviously must think that you are his best option (for the moment) or he would have ended the relationship completely.  But he's in a no-win situation because of your aggressive pursuit of wanting to hit the next level way too fast.  He still wants you in his life, but he can't pretend that he wants you too much.  You've already spooked him, terribly, by pushing for commitment way too fast.

His attitude makes perfect sense, for the moment.  But if I was your boyfriend that "small falling out" would have been enough for me to walk away permanently.  I don't have patience to continue to try to pursue any relationship where the girl and I are not mostly on the same page.  You two are reading different books, dear.

move on.......its over

With so many men being innocently accused of sexual relations due to #metoo, he probably doesn't wish to become another statistic. This is an example repercussion that occurs when an individual group that profiles wants something and as a group their behaviors prohibit them from getting what the individual wants. I know many men that behave in a similar way because of #metoo... and speaking for myself I don't even bother with women anymore period, and I'm far from being gay.

You seem to offer sex rather readily

Interesting problem. Could be he's had some questionable encounters when you were separated and might be afraid of giving you something. Or maybe he's been freaked out by the news and he's afraid if he initiates and you rebuff him, he's setting himself up for a sexual assault charge down the road, a side effect of the #metoo movement is that sexual spontaneity is risky for guys in certain situations. Or perhaps he realizes that the faster he proceeds sexually the more you're going to hold him to the ultimatum of advancing to a level he isn't comfortable with, so he's going to force you to set the pace. Whatever the reason, you need to discuss the issue with him. You've shared your body with him. You're sharing a bed with him, you should be able to talk about this openly with him so you don't have to guess his reasons.