Milton didn't really understand why the wolf acted like it did. Maybe it was afraid of Blythe. It didn't matter though because Blythe was there, the wolf wouldn't be able to hurt them.
Even if he was slightly confused about what Blythe had said, Milton trusted that his words were true. Maybe they'd be explained more later, but Milton didn't really care which way things went.
So, that meant this wolf was James. Strange, but alright. Crouching down, Milton picked up his knife, smiling at James for a moment while putting it back in its place.
He had almost killed James, woops.