[...] he knows she was in Pete's car because she had left her sweet and sour nail polish on the dashboard. This tipped him off to know he was in danger. During the drive, the mob guy in the backseat put a canvas bag over Irving's head and then pointed a gun at his neck.
All of this implies that at an earlier time, Irving was in Pete's car. Irving saw her nail polish on the dashboard and realized that he was in danger.
The way this sentence is written is special:
During the drive, the mob guy in the backseat put a canvas bag over Irving's head and then pointed a gun at his neck.
Its purpose is to give you the reader information directly. It does not serve as a description of the current scenario. Initially, the scene is taking place at the house. But the words "during the drive" serves to set up the events that took place earlier in time. In other words, that sentences is serving as flashback.
So, at the house, Irving is scolding Rosalyn for talking to Pete. He knows she was talking to him and that she was riding in the car with Pete because she left her nail polish there. While Irving is scolding Rosalyn, there is a flashback to when Irving was riding with Pete. While they were riding together, a mob guy put a bag over Irving's head and pointed a gun at his neck.
This can be made clear if you reread two paragraphs earlier,
Pete gives Rosalyn a huge wad of cash and says he has to leave to talk to his boss (Tellegio) back home. She tells Pete not to hurt Irving too hard.
Remember, Pete and Rosalyn were having dinner or lunch together earlier. When Pete says he has to talk to his boss, Rosalyn understands that Pete will also go talk to Irving and intimidate him. She knows this will involve Pete hurting Irving, so she tells Pete not to hurt Irving "too hard".