You should not be embarsassed, IMO. Did you display any discomfort? If yes, then the masseur should have asked the second time if it's ok. I look at it this way: Precum is as natural of a body process as it is farting, and I'm sure that the masseur might prefer wiping precum than smelling farts.
I had a masseur who did that, but in his case, I think he did it because he wanted to touch my penis. The reason why I can confidently state that is that I don't precum; there was nothing threre to wipe. I didn't feel violated, and I actually felt good to be liked, and he didn't try anything else after. I wanted a therapeutic-only massage that day, and in all honesty, he looked good, but I wasn't attracted or interested in him.
So yes, it can be a hint to let you know that he's willing to offer more, but it can also be just part of the process. If you want to see him again, will you feel comfortable inquiring about it, maybe expressing how you felt? I don't see much wrong with talking about it in a provate session.
I don't think that this is a regulated profession, so what I do is that I pay the regular amount unless he brings up that there's a new rate. When there's a new rate, I may or may not agree to pay, and sometimes I agree to the higher rate but give less or no tip, depending. Inflation is out of control in USA, so we all have to be mindful of our expenses, especially us the working class.