First I'll start by saying you got some things right. The MC feels off for me too at certain parts although "insane" would be the wrong way to call him. There are different kinds of people in this world, being overly forgiving isn't too uncommon and it happens a lot, especially since some people seem to have their priorities wrong. The part about the VN being racist, xenophobic, etc. I'd say it fits the characters (like Vulgor) or at least their personality types, and it's understandable that it's possible for that character to be that way due to their personality, while not masterfully crafted & planned it's still done well enough to fit the formula of cause and effect. We're talking about a VN that seems to be set in somewhat medieval times, and it's also a fantastic world, meaning that not everything will be the same or up to your standards. It's not being romanticized, I'm pretty sure Vulgor is chastised by every other character and is seen to deter the people he likes with his way of acting, and also MC not liking what the wolves did to the rabbits meaning that what you said would be partially wrong. Obviously, everyone is entitled to their own opinion and I might also be desensitized, however, it's not the first time a novel brings the idea of "slavery" as the main plot (Adastra), and at least it serves some kind of purpose in the story (creating conflict between MC and the wolves).
I'm sorry to see you didn't enjoy the VN as much as I did, however, I applaud you for not throwing unnecessary hate, instead, writing a coherent comment with constructive criticism and subjective thought.