Earlier quoted context omitted.
I assume Microsoft never allowed, say, swastikas. There's no reasonable expectation that you are able to spread racist propaganda in a car racing game (or for that matter in an actual car race; I think those tend to have very strict rules around decoration). I can see an _argument_ that Twitter, say, should be forced to pander to racists. I don't buy that argument, mind you, but I can at least see the thought process…
That's an argument for banning swastikas, not banning anyone who displays a swastika. And before you say "come on, swastikas are pretty extreme", remember the moral panic we just went through when 4chan trolls convinced people that the OK hand sign was a "one-sided version ofna White Power" sign and got people fired from their jobs for making the sign.
This seems semantic. For example, cheating is banned in many games, and if you cheat, you get banned. Banning cheating and cheaters is effectively the same thing.