Chapter 7, Why does Karen say they should be careful about who they see?

It is because Karen likes Conrad? OR that she's telling Conrad to control his life and live his life??

I also don't get this, but wondering if this is right...

What is Conrad perception of Karen and her state of mind?

Is the answer for that this:

Conrad talks to himself, saying "Okay Karen we'll see you around who needs you anyway who the (expletive) needs anybody?