IC racism wasn't really banned at any point as far as I know, to a certain point of course, as there were people that would express their IRL hate using their character, but in most of the cases that could be easily distinguishable. And it shouldn't be related to specific IRL events. OOC racism is a different thing.
However, various national and other types of issues, as well as relations to IRL events, should be kept out - it's not IRL, it's a completely different universe with an undefined prologue. G. Floyd was an IRL event and even if it was fun, it shouldn't have had an impact on the server timeline. However, if a similar event would've happened in the ls-rp universe and that would've triggered those events, it would've been much cooler.
However, I think LS-RP's approach to COVID was very good, allowing people to roleplay its existence, however, no one was allowed to roleplay having COVID, creating an environment where characters could establish their own protection measures, but avoid trolls which would go around coughing on everyone and doing '/me has corona virus'. Sadly, I hoped to see more precaution measures taken around, like GOV DOH was planning on creating roleplay around testing centers, but it is what it is, it was completely up to individual players.