Even when the insults could be considered objectively offensive I'm still generally okay with it. I've been called names quite a bit in the workplace over the years and I'm okay with it if makes them happy. Being autistic I don't really care and neurotypical people seem to get enjoyment calling people names so it's win-win.
High EQ individuals have told me this is wrong and the appropriate reaction would be to take offence and try to make them feel bad, but I've argued this would just result in an objective reduction in happiness in the world so it wouldn't make sense. Plus, most of the time my colleagues have been nice to my face so it's not like it's ever got in the way of me doing my job.