We missed something upstream a bit. After Garak's line of "Ah, but I got off several cutting remarks which no doubt did serious damage to their egos," the following takes place:
BASHIR: Garak, this isn't funny.
GARAK: I'm serious, Doctor. Thanks to your ministrations, I am almost completely healed. But the damage I did to them will last a lifetime.
Then it proceeds as shown here. Also, the last line in full is:
GARAK: You're right, as always, Doctor. They must have mistaken me for someone else.
Just want to be accurate.

Continuing forward:
[Captain Sisko's Office]
KIRA: The Klingon ships keep cloaking and decloaking, so it's impossible to get an exact count, but so far we've been able to identify at least twenty different warships in the vicinity of the station.