Fucking your reports is not your personal life. It's your professional life. It opens both you and your employer to professional liability.

Under American law, if my manager, Bill, is having a secret - or not-secret affair/relationship/'friendly' arrangement with Sally, who reports to him, I have grounds to sue both Bill, and my employer, on the allegations that this is a quid-pro-quo relationship. If they break up, Sally also has grounds to sue both Bill, and the employer, on allegations that she was pressured into this relationship. It turns into an incredibly nasty game of he-said-she-said, which is why the professional thing to do is... Not sleeping with your reports. Professionals don't open their employer up for liability, in exchange for personal gain.

If he were sleeping with some rando engineer that worked on Cloud, that would be his personal life - because he is outside that engineer's reporting chain.