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This is really excessive, it's not even suitable as a joke.
I have several Pudgies and Lil Pudgy in my collection, but that doesn't mean I have to stand there and listen to nonsense.
Imagine, you have a team member from India, and they still say something like that?
What "just a joke"? Does that logic even hold? Basically, it's just trying to whitewash discriminatory remarks. Allowing racist comments and then claiming it's just for fun? This excuse doesn't hold up.