I think so too. It's quite a complex paladin he has there. One who doesn't respond to the usual appeals to fight evil. More of a courtier-type paladin, which is exactly what doghead said Xavier would be.
Only thing is, Oculus doesn't know anything about that, and is only interested in having people he can trust around him. As he's learned, anyone can be a spy. Seeing Xavier is a worshipper of Heironeous, he tried to provoke him into proving that he is indeed a righteous follower of Heironeous and opponent of evil. It didn't work, which as far as Oculus is concerned, shows Xavier to be at minimum a foppish courtier posing as a devout of Heironeous, and potentially worse - he could be a spy for one of the nefarious factions. Or a simpering fool who will tell the Baron about what they are doing. Oculus has no regrets at all about what he said, or of Xavier leaving. Besides, Jasper's diplomatic approach wasn't working. What else is Oculus or anyone else to expect when he shows up in fancy clothes escorting a lady?