What is the interpretation of the verse: "Allah knew that you were betraying yourselves, so He turned to you in forgiveness..."?

The aforementioned verse was revealed in the context of discussing fasting and what is permissible for the fasting person during the nights of Ramadan. The reason for its revelation is that, in the beginning, if one of the Muslims slept during a Ramadan night, it was not permissible for him to eat, drink, or approach his wife thereafter. Then, they did so anyway and complained to the Prophet, peace be upon him. So, Allah Almighty revealed: ﴿Allah knew that you used to deceive yourselves, so He accepted your repentance and forgave you.﴾ This means you used to have intercourse with your wives, and eat and drink after 'Isha' and after sleeping, or you used to betray yourselves and wrong yourselves by having intercourse, exposing yourselves to punishment and diminishing your share of reward.