The setting should still be there, but disabled, as far as I know. If it is still disabled, have you maybe a hidden project that is not set to public, but still has the meta info about sensitive content?
It is in the profile settings.
Content — How content on itch.io is shown to you
- Show content marked as adult in search & browse
Make sure to hit the feedback button and tell Itch directly, that this "solution" to the issue with publishers not finding their own adult games is not helpful for you. Supposedly the option to disable adult content is disabled for publishers of "adult" content, so they do not complain later, that they cannot find their own game.
The intention is understandable. But the consequences is, that Itch is unusable as a user, if you published something for adults. Even if it was a horror game that might not even be considered "nsfw" in the US, but should still not be seen by younger users. Having a publisher and a user account is currently a workaround for this. But this is unsatisfying. A hobby game dev can't just create a game for a nsfw/horror game jam and still use their Itch account normally afterwards, because the option is disabled.
Itch could make a huge disclaimer dialog when deactivating the option and always activate it after an update of a nsfw project or any other methods to avoid the complaints. I do not know how many complaints are avoided by blocking the settings, but I do know that there are new complaints like your's.