With all due respect, as a bi person considering apping a gay character, this is still a little... troublesome, I guess?

You say that it won't really be an issue, but by having it be a thing in the setting of the game, it's automatically an issue. It's a thing that queer characters have shaping them, even if every character who's apped into the game is magically super progressive, and it's a reminder for queer players that we really can't go anywhere without our orientations being a huge deal.

I get that you want realism, but this is a game where people get to make friends with haunted swords and goo dragons, grow wings, dive into abandoned ruins, etc. Why pick and choose Industrial Revolution era views of homosexuality to pigeon-hole into this game and not, say, Industrial Revolution era views of women, or other marginalized groups? Or, like, all the disease that was rampant back then?