Daddy...
He has secret fantasies of incest? Or at least, that's how you interpreted his words? And that disgusts you?
But maybe he was referring to relationships like Sugar Daddy-Sugar Baby? Maybe he saw himself as a potential Sugar Daddy with you? Or at least he thinks of Sugar Daddy's fantasy?
Each of us feels things differently ...
But personally, I would have discussed it with him, I would have told him what I was feeling, I would have given him the chance to express what he meant, before completely blocking him.