False Alarm
They were staring at a life-size human skeleton, but it was a copy. Someone deliberately inserted something in the bark of the tree as a joke to threaten or prank anyone. They laugh at the joke, but I have no idea why Kyle would caution them about a scenario like this.

False Alarm
A Sudden Realization
They claimed that Kyle was skilled at differentiating the scent of non-threatening and menacing items based on his ability to escape from harm. But then they realized something, and from then on, everything fell together.

A Sudden Realization