Both words can be used as either nouns or verbs, so that's not a foolproof distinction. But “affect” is almost always a verb
The sentence that suggest that doctors, like lawyers are part of superficial middle-class world of nineteenth century Rusia is:
The doctor put on just the same air towards him as he himself put on towards an accused person.
Avoiding a conflict isn't healthy in sustaining positive relationships for a few reasons. One, if something bothers you and you don't say anything about it, you'll allow the issue to fester. Eventually, it may come up in the wrong way or at the wrong time. Second, if you always avoid conflict, the other person in the relationship will never know what you're actually thinking, which will lay the foundation for a shaky relationship.