Some people are just going to be less comfortable with sex in media than other people. It could be due to religion or morals, but it could also just be personal preference stemming from any number of things, and their comfort level with it isn't in itself a measure of character one way or another. I think getting this explicit with the sexual content is going to cost the game something. Is the cost worth it? No way to know yet, and everyone will have a different answer ultimately. But the question, the real question, isn't about sex in the abstract. At least it shouldn't be. The question should be what each individual scene of sexual content adds to the game. Does it add anything to the world or the story that can't be done without? Or can't be conveyed in a more efficient, concise way? If the answer is no, then they shouldn't be there, because those are questions that should be asked about any scene, and if the answer is no, then the scene shouldn't be there full stop. The eventual sex scene between Tav and Gale? I think that serves a purpose, at least in theory if not in execution. The weird bugbear sex thing? That's honestly just dumb and a kind of humor that's beneath the game. I think the same goes for being able to fire Barcus Wroot from the windmill.
Edit: And regarding vulgarity specifically, in the form of swearing, I definitely think it can just go too far. My example of that is The Witcher 2. They specifically used the word 'ploughing' so often that I just straight up got sick of it. And it was noticeably tured down in Witcher 3. Frankly I think the Duergar are approaching the point where it's just an eye-rolling level of vulgarity. It's not just offensive, it's annoying. It starts feeling forced and unnatural. I think as a contained occasion it's acceptable, but if it gets more intense than that, it'll really just feel like 'I get it, you're vulgar. Can we just have an actual conversation now?"
