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Be flexible and get hired. Once you're in, you can Machiavelli yourself to the position you actually want.
I might be overthinking this but I feel he is offering me the alternative job cause he is set on the other person and I also think he did it because I am the youngest candidate (based on what ny recruiter told me). Should I reach him and ask to keep our conversation between ourselves? I would not like if he goes around sharing this information with the rest of the hiring committee…
Obviously the company is interested in you. Specifically that industry it is a bit age-ist. (It's a hug issue in manufacturing) Not to give your hopes up the guy with more experience and is older will probably get the offer first. Unless the company is moving more so hiring a candidate that has most of the experiences they need and can learn on the job helping to keep you there longer...
By saying you're flexible is always a positive...