Confused with AI behavior

I used 'discuss' 'don't settle close to me' when I saw a settler form Brazil heading to the south border where I was...Literally more than 15 tiles away form his capital and in my territory. He accepted and agreed but still settled a city within my proximity, behind my lines. I denounced and he goes 'wtf'. Ruins my diplomacy pretty much he tells everyone else that I am a meanie.

I re-load a couple of turns later and really make sure to block off with culutre and units so his settler can't get through the 1 tile between my cities....He embarks and still settles...

Same procedure.

I don't understand why the AI flips out when I denounce after I ask him not to settle near me or why the AI is even settling so far away and in my territory. Funny part is there was no lux....Just a horse and a wheat!

This same problem happens when you 'discuss' quit sending missionaries...and they say ok but still continue. If you denounce...You take the biggest hit but I just want them to back off without dowing, but everyone ends up dowing me.

Any advice? What do you usually do. I was trying to play a peaceful game!

Honestly, unless it actually messes up my plans, I'd ignore it if playing peacefully. I'd also tell him to stop settling by me since that will annoy him and maybe later I could goad him into DOWing me so I could puppet the city with minimal diplomatic repercussions. You could also work to build a DOF circle without him then denounce him and get the rest of the world mad at him.

Alright, how do you go about building the DoF circles? Do you give stuff for free? Interested into working this way into my gameplay, I haven't purposefully sought out the ability to acquire friendships.

I'm normally spammed with DoF requests in my games, so I just watch who likes who and accept the ones most beneficial to me. As for why I get them, mostly because I play on King level, but also I scout early and always trade something with everyone as soon as I can, or embassy, whatever. Nobody outright hates you at first, except for certain neighbor AI personalities. As soon as you get that first trade most remote AI will go friendly.

I usually ask but am denied even after trades O.o interesting. Maybe its because I am on emperor, was very curious if there was a specific way to effectively DoF civs.