The nipping and digging at your clothes is typical of young buns. I would gently remove him when he does it. Just gently put him down on the floor or away from you if you already are on the floor. Repeat until he understands digging and nipping is not an acceptable form of social interaction. Buns are often nippy when they’re young, much like puppy dogs. It’s not an aggressive thing, and it shouldn’t be punished. It should just be discouraged. If he bites you, you can yelp, that works with some buns but not all.
Sometimes a bun will nip and dig when it’s in a person’s lap because it wants to be put down on the floor or as a way of saying “I need to pee”. In my opinion it is best to put the bun back on the floor, because cuddling should never be forced on a rabbit. If he knows he’s free to go when he wants to, he’ll feel much more relaxed near you and he’ll be more likely to seek you out for pets.
Most rabbits really like being pet, but they are also instinctively wary of being caught and held, and this creates a conflict in their little heads. Cats are somewhat the same way, some cats more than others. It’s like a battle between the domesticated side of the animal and the wild side. With time and persistence and patience from you, the domesticated side will eventually win. But it can take several months before the rabbit realizes he can trust his human.