It can take a moment to realise, my original post said "bad/lame" because the use of "lame" was another popular one that took over as supposedly less offensive than "gay", but it too has the capacity to offend those that it would apply to so I thought it best to edit that out.
https://www.si.com/extra-mustard/2020/08/13/tony-hawk-pro-sk...
Sometimes it takes a long time for people to think about the words and phrases they pick up.
Mind you I don't use that's lame, not a native speaker and probably also too old for that phrase.
Fag on the other hand I have very little tolerance for. It's a nasty enough word you don't really drop it accidentally unless you use it regularly in some communities (lots of gamers for instance).
When I get called a fag, it reminds me of all the times I got my ass kicked for how I present myself. I won't force people to stop saying it, but I'll mention it and won't associate with them if they don't stop.