Stupid bit of code but to call it RACISM is a bit much
They clearly didn’t test this rule with a variety of cultures. They probably only tested it against white names.
Sometimes “testing” is just “hmm, yeah I can’t think of any problems this could cause”. I like to call this thought experiment testing. All features get thought experiment tested, because everyone has at least some level of critical thinking. The thought experiment tester who allowed this wasn’t thinking of Asian names.
I don’t disagree with you, but I know someone with the last name Øe, and that’s very much a white name.
Without knowing the person and how they post, it’s hard to say if they’re being serious or just joking