I've seen a couple of RPs that had weird rules, like gay and bi characters were allowed if "there was a reason they might not be straight in canon." (Or something like that, I didn't stay in that RP long and hadn't seen the rule when I joined.) Though from what I did see that essentially amounted to "We'll play whoever we want as whatever we want," so maybe it was some stupid rule someone made and then walked away.

But that is just over-the-top stupid and bigoted, yes.