Yeah, he said something like "gay" doesn't exist in Star Wars, meaning, calling people "gay". There was an apology and clarification afterwards and possibly a firing, I think. That's the only thing that I recall, I think some people over time have falsely attributed that to something said by Lucas or LucasArts. I've searched to see if I could find anything else being said before and found nothing.
After thinking about it. I think the thing i read was on a forum around the time the Two said Mandalorioans where first revealed. So it was probably just hear say