Micolash is trying to process this information, that this man considers himself a god, and its a hard train of logic to follow. It keeps getting derailed by hiccups such as the fact Loki would deign to be something above humanity but still look human. It would make much more sense to shed it all, wouldn't it? Why would someone want to be shaped as a man if they had options outside of that? Unless this one doesn't. Which wouldn't be much of a god to begin with if he couldn't.

"...A step. Beyond. You say," he finally replies, his words plucked and languid, as though verbally tiptoeing. "...The term 'god' is. Misleading to begin with. The Great Ones are as unto such, but are not as well. The first and greatest Insight Bergynwerth's research revealed was that what we always understood as gods were always. Beings far more approachable. Tangible. Higher lifeforms who exist higher and deeper in the strata of realities.

"Do you...make the same claim?" Let's try and be diplomatic and empirical about this. Loki has been a pleasant conversationalist thus far, he really should give him some chance to explain or correct himself.