Was townes gay
My impression was that Townes was gay, but was infatuated with Beth nonetheless. I think he loved her as an incredible chess player, and I do think he thought she was beautiful and captivating and had a sort of crush on her.
The most obvious reason that Townes and Elizabeth don’t sleep together in The Queen’s Gambit is the implication that Townes is gay. The closest they come to becoming lovers is in "Doubled Pawns," The Queen's Gambit episode 3.