if i was freud, i'd think this is a call to write a complex!
but, given that this doesn't happen in women (who have different social conditioning when it comes to hugging and generally touching each other, and different arousal mechanisms), it strikes me as almost impossible that this is biological. if it was some kind of reaction, we'd expect the same thing for women born into families with many sisters.
what's interesting is that it seems to be agreed that birth order has a stronger correlation than any known genetic factor - meaning this is the strongest evidence we have as of yet.
and, it seems to me to be something based on conditioning. it suggests that the more time a young boy spends in intimate relationships with multiple male family members, the more likely they are to normalize, internalize and then crave it. there's the freudian complex, for you.
now, suppose you generalize this. i think you're getting closer to the right answer.
i would like to see a study that asks the question of if gay men are attracted to people that are similar to their older brothers.