If you meet someone to strictly masturbate in the same room? Yes, both people would be naked. The main rule is absolutely no touching of the other person, you can ONLY watch the other person in the room.
Do you consider this cheating on your spouse, significant other?
Have you ever been asked to masturbate for someone while they watched you perform this act? Have you ever been asked to watch someone masturbate, nothing else happening other than you watching them masturbate?
Again, do you consider this cheating?