For context, my friend is a single mom and foreign (Asian). Her son is 2 years old, and his biological dad visits him every couple of weekends (so there is a relationship there).
Anyhow, I took my kids (4 and 2) over her house for a play date over the weekend. My husband showed up a little later because he was at work. My husband wanted to see our kids because he was stuck at the hospital for 48hrs, he doesn't usually come to play dates with us. When he came to my friend's house, my kids ran up to him saying "hi daddy" "I missed you daddy" giving hugs etc. Hearing my two kids, my friend's 2 year old started saying hi dada to my husband. Which I'm not sure if my friend should have corrected him or not, he's little and doesn't really understand the meaning I don't think. So I didn't say anything.
However, after this she was saying things like "go to daddy" "go see daddy" "play with daddy", which made me very uncomfortable. My husband was zoned out playing with our kids and didn't hear any of this. I don't think that's appropriate and also probably confusing for her kid too because he has a dad, they don't have a great relationship but he still sees his dad occasionally. It was also confusing for my 2 year old, who started saying "no, that's MY daddy". What should I have done in this situation? Or how can I address this moving forward?
edit: I did want to add she's from the same country as my husband, where it's totally normal to call people you are not related to (that are older than you) "auntie" or "uncle". That confused me at first haha.
tl;dr Friend has her son calling my husband daddy. How do I address this?