This leaves out a lot. xananax did use the n-word in a few messages 8 years ago to refer to himself as a joke, in response to being called that in other communities (he's arab and thus one of the slurs was sand n-word). He has apologized for those messages a long time ago, and throughout the years has shown no tolerance towards towards racism or any other kinds of bigotry. What he did do sometimes was use some very strong and crude language (think on the level of calling someone human filth) towards such bigots (if I recall correctly there were at least two instances of such events in the past once towards someone defending israel's actions and another towards a transphobe, he did apologize for both I think). Like, I think he can be criticized, but not for racism.

Also, I think the main drama is just bigots suddenly noticing Godot's stance in regards to inclusiveness that the foundation had the whole time, from a tweet by the foundation sarcastically using the word "woke" and encouraging people to share their games that are "woke". The xananax thing isn't really the main drama, I think.

Yes, the Twitter drama is the actual drama, not the discord stuff. Their official Twitter posted a relatively harmless "woke" tweet, which got met with the usual derogatory replies you would expect on Twitter. They then deleted all those replies and blocked their authors, but also deleted and blocked tons of regular replies to the tweet.

The following statement by their community manager also pissed off a lot of people, because they were asking everyone that got blocked to manually appeal the block, instead of just taking their time to review the tweets they deleted and unblocking people

Even then it's still a minor drama that is getting blown out of proportion