Attached pictures demonstrate only a specific example ("Sappho", the name of a Greek poet), but it is not an edge case.

I was not able to test other common words considered "offensive" only by bigots because I changed my account name before the thought occurred to check on more than that one. Any real human looking through the list of "offensive" words should easily be able to identify and remove the homophobic (or otherwise hateful) nonsense put in as prohibited names.