Yeah, I think it means Varys is going to spread the word and try to get some sort of betrayal in motion. The interesting thing is Tyrion becomes complicit if he doesn't stop him or warn Daenerys. He has a huge decision to make.
I feel like the show is leaning into Jon having to kill Dany to save the realm. For all the episode's faults, it did finally give me the plausible belief of a mad queen. She lost Jorah and now Missandei, her two closest (only?) friends, lost another dragon, and is a mess. I can see her wanting to burn it all down. Jon never wants it, always refuses it, but inevitably has to take it to save his people. Final step may be saving them from Dany.