Sora does remember, but prez tried to get him confused… it didn’t work.
He connected the dots and apologised for the things he did at the hospital.
She was happy after that because he now knows, but effectively told him he doesn’t need to feel anything for her (or that she understands things aren’t the same as before), they move on from that and go to a bathhouse, where Sora kept thinking about it, kind of realising his own feelings where the two girls are talking about it in the other side recognising they both like him.
In short, the ball is now on sora’s court and I don’t think he will do anything useful with it.