Thing is, cute has so many applications. A kitten can be cute. So can a child. A pair of shoes can be cute, as can the 'girl next door'. And yes, some people use the word cute to describe someone who they desire. To be honest though, if someone called me 'cute', I'd be thinking FRIEND ZONE. Unless I was wearing a onesie
It could be worse though. I got called a Young Lady by a man who was interested in me when I was in my 20's. UUrgh.
Never regret anything that has happened in your life. It cannot be changed, forgotten or undone. So, take it as a lesson learned and move on.