I don't know how their system works, if using these words just means the comment won't be shared or if it flags it for a moderator's attention, but I don't think so. Here's a direct quote from a developer:
> I'll have to think about this. Hard-coding it means I don't have to do a database migration every time someone comes up with a new slur. And putting it in a DB table means someone could very easily remove it by deleting every row of that table, which isn't good. I want to make it very difficult for racist trolls to use the most updated version of Lemmy.
https://github.com/LemmyNet/lemmy/issues/622
In my view this goes against the core point of the fediverse. The whole reason I like the fediverse is because it democratizes control by giving it to the users instead of a small-group of potentially self-interested owners.
(After googling I found out "n!ps" can be used as a racial slur but I associate it with a funny slang for "nipples". I wondered how the AI conference dealt with this but apparently they changed their name a couple years back to avoid connotations with the slur so maybe it's more widespread/well known than I thought.)
(edit: censored slurs. asterisk didn't work because it triggered the markdown so I used !)