Having the BBEG be a bigot and having their bigotry be integrated into the plot is fine. I'm talking about having an irrelevant NPC just exist as the butt of jokes for the players. I feel like I would just get tired of hearing those interactions repeated for hours.

Wasn't even a BBEG, was just a random NPC in the party that party members would make fun of for being "a man pretending to be a woman". The character remained in the party through the whole campaign and only served the purpose of being the butt of transphobic humor. I don't even think they had good stats or abilities.

Everyone thinks their takes are right or they wouldn't have them