Garak was initially intended by actor Andrew Robinson to be omnisexual. Indeed, Garak’s first encounter with Bashir is very clearly sexually charged, which Robinson has stated was intentional. Though the pair would eventually become good friends, his primary interest in Bashir at the outset was sexual. That aspect of the character was eventually dropped for some disappointingly cowardly reasons.
The idea of a queer character on a Star Trek show was routinely vetoed by executive producer Rick Berman. Berman believed any hint of non-heterosexuality on Star Trek would have alienated a significant portion of the franchise’s fan base across America in the '90s. It’s an unsurprisingly reductive point of view, especially for a franchise as famous for its progressive politics and social messaging as Star Trek. It also flies in the face of the views of Star Trek franchise creator Gene Roddenberry, who was advocating for LGBT representation by the early days of Star Trek: The Next Generation in the late '80s.
It’s not nonsense:
https://screenrant.com/star-trek-ds9-garak-queer-rick-berman-veto/
And I choose to headcanon that we just didn’t see any of the physical affection on screen.