Just my opinions:
For dinner, they do not want clothed (or unclothed) folks who make guests uncomfortable and they want to make clear that they reserve the right to refuse service. If you "fit in" with the typical Club O guests, then they will welcome you. We have had dinner at Papagayo many times without ever staying at Club O.
We feel safe walking from the Village area to Club O and back at night (but never after 11 pm) along the beach. Others do not.
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