There are gay dudes, gay women, bi people, there's married gay couples. Players can marry same gender. Everything. None of it is ever portrayed negatively or for comedic effect. It's just there sometimes. You don't have to go out of your way to find it either, you directly encounter a chunk of it on the main quest line.
This game has absolutely zero concern with lgbt content. Anyone that has played this game will not believe myths about official censorship of lgbt content having directly seen for themselves that it's not.
There’s also the forced fem dude, who got castrated and blue dresses as a woman and has a male partner.
I totally missed that one. Is he like a court eunuch then? I know they had a lot of those back in old China and as a group they held an enormous amount of power at certain points in Chinese history.
He's one of the two fighters who crashes the party when you go to meet the Ember of the East.