Yeah, that is a tell that the manager is being unreasonable. What are the odds that every portion of this sits with the developer? Close to 0. That isn't how miscommunications generally happen. But it is a pattern that turns up when borderline abusive people report their interactions on the internet [0]. I don't trust this paraphrase of what Jerry was saying at all. It seems much more likely he led with something reasonable "Bermuda isn't in the Caribbean and we made a decision in the past to exclude Caribbean deals when that sort of search happens" then the manager fumbled the conversation in follow-up and managed to make it weird.
Though it does seem like the developer was making mistakes; I've seen scenes play out that I'd rate as similar. Part of the dev's job is to manage their manager when that manager is struggling. In this case the manager seems to have gotten stuck in the mindset of being a big monkey and the response to that is to let them monkey out peacefully and not make a fuss.
It could have been worse; but this looks like bad-to-average leadership on display.
[0] Big red flags in the "I wasn't sure he was working in good faith" and "Maybe he was feeling lazy" quote with no evidence. We're likely seeing misreported conversation; the manager doesn't understand what is going on conversationally if he got to that mindset in this sort of situation. What else did he get wrong?