Loki looks over to her, trying to place the face and voice. He's seen her, before he broke out, and possibly at the cafe. And he's not under his illusion and she's not making to turn him in, so it's probably safe to be frank with her.

"I would guess that whatever created the illusion is losing control over it. Perhaps because it is losing control of so many of its captives, perhaps there's something else distracting it..."