When it comes to products aimed at mainstream audience, like D&D is, it should be inclusive and non offensive to everybody.
In what kind of fantasy world are you living? No matter what you do, someone will be offended if they know about it, no matter what you do. The point is, who do you NOT want to offend, and that is telling of the company, the location, the culture, and the era it is made in. And how that is perceived also depends on the person, the location, the culture, and the era...
Let's take the 5E books of the last decade, WotC has been bending over backwards to be as non-offensive as possible towards to certain groups of people. I can't complain about that direction, just about how it's implemented. It feels fake, unauthentic, overcompensated, and like they went through a checklist to include xyz. As an example, a mediocre piece of art that seems to be included because it shows all the colors of the rainbow. I've seen better pieces of art that are older that show all ethnicities and all kinds of cultures in a way more natural setting (bazar/street/festival). I have absolutely no issue with some good art of a Black paladin, an Asian bard, or a Native American alchemist. Normal people having normal jobs, doing regular things, instead of assembling for a color chart photo like some sort of Power Rangers or Captain Planet... The same is true for much of the queer art, over done, stereotypical. That's not how most of the queer people I know are, they are just normal people that happen to love people that have the same 'equipment'.
But when you realize that there's also an American culture and that differs on many points from many European cultures, it's not that weird that certain choices aren't received well everywhere by everyone. I see American 'fake' friendliness vs. Dutch 'bluntness'. I never knew that Americans tend to perceive the Dutch as 'blunt', never knew we were exceptionally tall, etc. Until some Americans on YT pointed that out. I just knew that much of the American friendliness felt overly fake and that we collectively want to punch American carsalespeople...
The amount of fear many Black people have towards the police is alien here and frankly horrifying. That doesn't mean there's no racism, sexism, and many other isms, because there is. It's just not to those extremes. It's still bad and for some reason isms tend to sometimes gain in 'popularity' for some reason... There is no single
good way to do everything, and you shouldn't force your believes onto others. That goes both ways. There's a difference between having believes and forcing them onto others. The Freedom of Speech without limit is imho a problem, freedom of speech is fine, as long as you're not hurting others. Your 'freedom' ends where someone else's begins.
As for sexism being fixed 25 years ago... Oef! Maybe it was less bad 25 years ago, then 50 years ago, but it was still there, everywhere! Just like it is now and I suspect that it will be there in one form or another for eternity. The problem is accepting the status quo as a 'solved' state. Things can always be better...
When you look at media from the US vs. western Europe, vs. eastern Europe vs. Japan vs. China, etc. You see some big cultural differences in isms, even in modern media that's distributed/translated all over the world. Is Japan completely bad because the sexism is way worse then I'm used to? Is eastern Europe completely bad because the amount of hate towards queer people is way higher then I'm used to? Is the US completely bad because the amount of racism is way higher then I'm used to? Those are internal issues, that need to be evolved internally.