1) language evolves daily. fatphobia, homophobia, transphobia, are terms that describe the bias or repelling, repulsive against those particular groups, and are not to be confused with the medical use of the term phobia. for example, a piece of cloth that is "hydrophobic" does not mean that the material is scared of water, merely that water is repelled by it. the repelling nature is the focus, not the "fear".
2) in the context of the scene, there is a difference with "not acknowledging" the remark and "not engaging" on the remark. the MC could have acknowledged that the homophobia was bad by saying to himself "wow this guy is homophobic" without actually confronting the person. but the fact that neither the mc nor the writer makes known their distaste of the statement implies that they themselves agree to those statements. I believe Caribdis does make an effort to make it known that they arent homophobic in their new game, so i felt comfortable addressing that here in this public forum to just bring light to this singular thing i have an issue with in this older game.
3) There's a difference between "doesn't care for gay people" to "agrees with gay conversion therapy"
4) Gay people's existence isn't political, homophobic people want to make it political so they can go against it without feeling the moral decay set in themselves.
5) I don't really have a problem with the devs. I'm just pointing out a scene that I didn't appreciate in a game I appreciate for the most part, which i feel like is a healthy relationship between dev and consumer.
6) nobody is asking the devs to turn this game into "games with big girls and gay or trans people in them"