A Midsummer's Nice Dream - S22-E16
Continuity mistake: The seating arrangements during the Cheech and Chong show keep changing between shots. Smithers is first seen sitting between Patty and Luigi, then he is between Louie and Legs, and then he is between Patty and Luigi again, then finally, he is sitting next to Mr Burns. And Miss Hoover is at first two rows in front of the Simpsons, then she is a row behind them when Homer is going to the stage.
Answer: Willy referred to an encounter he believed he had with actual aliens, while Wiggum thought he was referring to the arcade game.