Morality is complicated (especially online), there are many ways to interpret things and almost everything is wrong to different degrees for different people. It’s easier to appeal to the hard limits of what people have or don’t have the right to do.

Morally, one can also say that feeding a troll or arbitrary censorship is wrong. Which is not the same as saying that the platform has no right to block trolls and have content rules.

There is nothing criminal in creating, using and sharing those mods (as hateful as they are), the modder could have simply said he did it because he felt like it, but the mediaval theming justification is really stupid and inflammatory.

The community reaction is very counterproductive, they have only succeeded in making the mod very visible now. And nexusmods as usual accepting all kinds of horrible mods but censoring only according to drama. All badly here.