Larian did not make the Forgotten Realms. They don't have that liberty here. A great deal of racial tension exists in the realms, but it is not treated as a good or acceptable thing by the majority of goodly people, not here. It should not be normalised into everyday acceptance here.
It is normalized into everyday acceptance in Realms among some goodly races. And has been for a long, long time. I remember reading about Gold Dwarves of the Great Rift in Dwarves Deep. There they are identified as a Lawful Good society that considers every other culture inferior and has a strong prejudice against other sentient races. The only race they accept as worthy of some trust is gnomes. And even then they consider them second-rate. I'm pretty sure that if you look into what Ed wrote back in the day more closely, you will find a lot more examples.
