Embrace/hold of Argentine Tango comes with many variations.
Distant/open (Stage dancers who need lots of space to move use this. Also beginners who feel uncomfortable in tighter embrace use this, too.), close/hugging distance (social Tango norm), very close/tight (with her left arm wrapping around his upper back, a style preferred by some, or perhaps, getting preferred by some of contestant stage tango dancers and their judges), are such options.
In addition, adjusting to height and body type needs to be done on the spot.
There are many things to assess at the beginning of social Tango dance.
On social Argentine Tango dance, woman offers the hold at first. That helps to set the tone.
As dance goes, he may choose to alter the hold and distance, and she may or may not like it.
Personally, I see it a good idea to keep what she offered at the beginning, close or open, especially when she seems to be a Tango dancer with at least intermediate and above skill level and apparently knows what she is doing.
That said, exception would be when she is not as comfortable in close Tango hold, or, is unsure as a beginner. In the case, the lead, provided he knows what he is doing, needs to take the lead.
After all, Tango, with upper body contact, is danced closer than most other dances.
Rise of other closely-held dances (kizomba, sensual bachata, some style of Zouk) has normalized closer social dance distance. But it occurred only within several years.
Like boxers choosing their distance and fight as infighter or out-boxer, it is okay to choose your distance and choose a dance that suits your comfort zone.
Social Argentine Tango is a hugger's dance. If you are not a hugger/infighter, stick to Salsa or Swing.
Throwing around some thoughts.
