Hegseth blames the media for reporting the story, however, he doesn't deny the story is true.
https://thehill.com/homenews/administration/5258597-defense-secretary-pete-hegseth-media-controversy/
“This is what the media does. They take anonymous sources from disgruntled former employees, and then they try to slash and burn people and ruin their reputations,” Hegseth continued. “Not going to work with me, because we’re changing the Defense Department, putting the Pentagon back in the hands of war-fighters. And anonymous smears from disgruntled former employees on old news doesn’t matter. So I’m happy to be here at the Easter Egg Roll with my dad and my kids."