iti sāyantanīṁ sandhyām
asurāḥ pramadāyatīm
pralobhayantīṁ jagṛhur
matvā mūḍha-dhiyaḥ striyam
iti - in this way; sāyantanīm - the evening; sandhyām - twilight; asurāḥ - the demons; pramadāyatīm - behaving like a wanton woman; pralobhayantīm - alluring; jagṛhuḥ - seized; matvā - thinking to be; mūḍha-dhiyaḥ - unintelligent; striyam - a woman.
The asuras are described here as mūḍha-dhiyaḥ, meaning that they are captivated by ignorance, just like the ass. The demons were captivated by the false, glaring beauty of this material form, and thus they embraced her.