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This was printed in Playboy magazine in April 2001.
It's hard to explain to people who weren't around back then how loose the "rules" were for making games. Conker's Bad Fur Day was definitely trying to market itself as edgy, but aside from some faith-based groups who would be upset, nobody really cared.
I mean, I am pretty sure this hard (not pun intended) advertisement was especially created to not confuse this game for children... And I am pretty sure some didn't care regardless.
Back in those times gaming was still seen as mainly a kid's hobby by most, so I would almost guarantee Conker fooled a lot of parents (didn't fool mine, though), especially being on the N64 and starring a "cute" squirrel as the main protagonist. I would actually argue, though, that parents cared a good deal more then than they do now. Night Trap and Mortal Kombat almost got games censored by the US government in the early 90s, and they'd be seen as quaint now. We've had a ratings system for 30 years and more underage kids than ever are probably playing adult oriented games today. An M rating is just what marketers need to sell their game to the junior high market because parents are ignorant and retailers just want the money, doesn't matter from where.