He is absolutely not going to be examining evidence that Zerxus had a sword through him within the past few minutes too closely.

Or be disturbed by the injury or that Zerxus is conscious and talking with that injury.

He is noting that at least that injury is healing.

Mostly, Asmodeus is now being direct enough that Steve feels challenged. "Yeah, I know the type. Seems to go hand in hand with a refusal to be intimidated into being well behaved and follow rules."