Although it was a joke, I was also very happy.

This feeling is actually very common. Even though we know each other's jokes are harmless, we sometimes feel uncomfortable. This may be because we protect ourselves or are sensitive to certain topics or jokes.

In this case, if you are unhappy but don't want to cause embarrassment or conflict, here are some suggestions:

Stay calm and relaxed: Try not to let the other person notice your displeasure, and keep a relaxed atmosphere.

Smile and Silence: A smile can imply that you know it's a joke and you won't care too much. Keeping silent may make the other person realize that his joke may be a bit inappropriate.

Find a topic to divert attention: if possible, try to change the topic and discuss something neutral or of interest to everyone.

Don't take it to heart: try not to take these jokes to heart and avoid letting these unimportant things affect your mood.

Use humor when responding: If you feel the need to respond, you can try to respond in some humorous ways, but don't make the response too sharp or aggressive.

Remember, everyone has a different understanding and acceptance of humor. Respect the feelings of others and learn to deal with your own emotions.