The game has a gay romance option, which is something that you can unlock over the course of the game with the right dialogue options and is fairly tastefully done. The game is very intent on being a 1403 simulator and the characters are all written with that in mind, but it's nice that the game recognises that gay people would have existed regardless of the cultural attitudes at the time.

I think his comments refer to the implementation of the romance in the way that it doesn't feel like it was put there so the studio could boast about how progressive they are.

In the first game everyone is assumed to be straight, and your character receives a stat boost from having sex, which sometimes happens in the story, but mostly will happen at "bathhouses", i.e. with prostitutes.

The exclusively female bathhouses, and the stat boost, persist in the second game, but there is an option relatively early in the game for your (male) character to start a gay romance with an important, recurring character.

I didn't follow through with that, but I was very pleasantly surprised to see it - both characters are sort of supposed to be womanizers, but it makes sense in the context of the story that they could discover feelings for eachother. It's up to you whether your character has a childhood sweetheart feminine love interest at home or not (from the previous game), but other than this relatively unimportant detail (beyond the roleplaying of it), the gay romance appears to be arguably the most significant romance in the game.

All that said, the game director who speaks is an asshole. Given that, I was pleasantly surprised at how "woke" KCD2 actually is. Guess he might has a different idea of "woke" than the rest of us, e.g. more "female ghost busters movie", less "gay representation".

Based upon the comments here it looks like no one here has played it.