Talky scene preferences

I've got a question for anyone that's been following my serial, Stephanie's Deal.

In Episode 16, Stephanie is going to have a session with a psychiatrist. So that will entail a long stretch where all the action is doctor/patient dialogue.

Would people rather read a scene where the dialogue is given word-for-word, or where what they say is just described?

Something like this:

Once Mom had left, the doctor started. “So, tell me what it’s been like for you having to dress like a girl everyday.”

“At first, I thought it was going to be tough. But after a couple of days being a girl, it just kind of got easier. There’s even some stuff that isn’t so bad.”

“You know, it isn’t bad or wrong if you actually liked something about life as Stephanie.”

“It doesn’t make me some kind of gay sissy weirdo?”

“No, it doesn’t. It makes you a three-dimensional human being. There's no shame for a male to get in touch with his feminine side. And I won't tell anyone you don't want me to."

"Okay."

"So, was there anything about your time in dresses that you enjoyed?”

“Um, I guess I kind of liked it that people kept telling me I was pretty. Not even family ever really told me how I looked when I was a boy, but as a girl even strangers say I'm cute.”

Or this:

After Mom left, the doctor started by asking how Steven's experience dressing as a girl was. Stephanie wasn't sure how to answer, until Dr. Howard made it clear that it isn't a bad thing to have enjoyed it a little. She told her that it was nice to get more attention as a girl. Stephanie had been getting many more compliments than Steven ever did, and it felt good.

Or does it not make a difference to anyone?