You aren’t going to be embarrassed for 8 hours after seeing someone on the toilet. The way it works currently in the vanilla game is that the emotions are constantly flopping just because your sim entered a well decorated room or walked in on someone using the bathroom but this isn’t how emotions work IRL. With the meaningful stories mod you can have a completely redesign this emotions system that make your sim’s feel more human. When The Sims 4 was released they had a lot of their marketing material focused on smarter sims and especially on this emotions system that seems to be a flop a few years later.