Yes, in this context it means ugly. In other contexts, it can mean dirty. It only has one meaning really, but this meaning can be interpreted in various different ways depending on the situation. It means repulsive. Makes you scrunch up your face and look away, as if there's a bad smell or sight that might make you puke. This is what disgusting means.

Yes, in that context, "disgusting" refers to feeling unattractive or unappealing, not dirty. "Disgusting" can mean: 1. Physically revolting: "The rotten food was disgusting." 2. Morally repulsive: "His actions were disgusting." 3. Unattractive or emotionally unpleasant: "I felt disgusting after the accident."