What type of relationship is this? I could use some advice or insights.

I'm a 23-year-old man, and my close friend, who is 22, and I share an intimate bond that resembles that of a couple, even though we are both straight. We spend nearly all our time together, often cuddling and holding hands, and we frequently have each other on our minds. Our friends often speculate that we might be in a romantic relationship. Despite this, after much reflection, we've concluded that we aren't sexually compatible, even though we sometimes wish it were different. We've talked openly about the possibility of having a sexual relationship, but each time, we find that we wouldn't enjoy it since we're only attracted to women. We both often imagine what it would be like if the other were a woman. While theoretically, one of us transitioning might address this issue, we've both come to realize through introspection that we are happiest as cis men. What does this relationship mean, and how can we navigate it? Both of us find it frustrating, and we lack resources for guidance. I'm concerned that this dynamic might be affecting our ability to connect with women. We're at a loss for how to unravel or even articulate the odd tension between us.