The bass player appeared as himself on the drama and Burton insists it's clear he had no idea the storyline suggested he was a creep dating a high school student.
"Pete really thought he was just coming on the show to play, like, a cool dude. And the next thing you know, it looks like he's having an affair with a high school girl," Hilarie tells PEOPLE. "That is forever now on TV. You don't get to takesie backsie that one [sic]."
"I don't think he realized our characters were in high school, because we were all in our 20s in real life."
In the episode, Pete made out with Burton's Peyton Sawyer, and Hilarie admits she didn't realize how icky the episode was until she watched it back. "I was like, 'Oh, there's a lot of insinuation in here. I thought we were just kissing buddies, but this looks bad in the edit,' " she says.
Hilarie has been looking back at the nine seasons of The CW teen soap with former co-stars, Sophia Bush and Bethany Joy Lenz (Bethany Joy Galeotti), for iHeartRadio podcast "Drama Queens". Of the experience, she previously said, "I have no sense memory of filming [the pilot], but I cried after we watched it because I was like, 'Oh my God, that little girl wants to be an actress so bad.' "
"And so I think us getting to spend some time with our younger selves in this tangible way, it's cool," the 38-year-old went on to add. "It's not an experience that I thought I would get to have."