Is it against the guidelines to have racist characters? (and show them in a bad way, of course)

I think @amberose is on the money. What I understand regarding guidelines is that intent doesn’t matter; you can’t use hate speech of any kind because it’s inappropriate for Episode as a 13+ platform.

What I think they’re saying in this screenshot is that content itself can be subjective so they would need to see what you’re asking about in the context of the scene and possibly even the story.

For 2a, I feel confident they’re telling you not to use things like slurs or discriminatory dialogue for any characters at all regardless of context and intent. So for example, you wouldn’t be able to use a homophobic slur even if the victim of it is the protagonist and the offender your villainous bully. You would not be able to have a villain make snide remarks about the “ugliness” of some skin tone. Etc.

Basically, I don’t think you would be able to include any anti-semitic slur, racist dialogue, or direct hate speech towards a character at all. I think dealing with antisemitism or racism as a plot would be more of a grey area and possible to do. Probably requires a little more subtlety to the villains’ hate, which can be more insidious at times anyway.

My advice would be to send your story in for review if you have episodes completed, even if they’re unpublished. That way, you know from the reviewers themselves if there’s anything you’ll have to pull back on or alter to fit guidelines. They might be able to accept a dialogue/narration script for review in its place. I’m not sure on that.