IN story this doesn't bother me. In that i don't give a flying who you are if you call me a word akin to that one whatever race you are your getting called it back or worse in the nicest way, and i have actually done it before. BEHIND the scenes this bothers me a lot though and was completely unncessary and feels like an excuse to just use the word.
Also at the time Kitty was what 12/ 13? She doesn't know the history behind the word like the writer and editor did or should.