I was maybe a bit smarmy with my reply as well, and a lot of my language was intentionally exaggerated. Let me get a bit more real here.
I realize that 'faggot' is not a word that many queer people and trans women are comfortable with reclaiming, and I respect that personal choice.
To contend with the issue at hand - there is only one use of 'faggot' in this game, and I strongly believe that it's essential to what the game is saying. I will likely put more uses of the word 'faggot' in the game, both in places where I feel it's necessary and in places that I think it's funny, or just fits the flow of words. I will explain why I used it, but I really don't have to.
The So-Called Man is a repressed trans woman, and 'egg' so-to-speak, and part of that suppression is implied, by the presence of 'faggot clothes', to be identifying feminine things as 'faggy'. At the same time, when that character comes into herself, 'faggot clothes' takes on a new meaning - it's liberatory, it's claiming dominion and care over what things she puts on her body.
Would this game be appealing to a few more queer folks if I didn't use 'faggot'? Sure. Ultimately, though, I would never really hear about it and never really know unless you left a comment about it. I've known LGBTQ+ people who dislike 'queer', and I don't intend to stop using that to expand my prospective audience. This is the way I write and the way I operate - I use the sort of language that appeals to me, and 'faggot' appeals to me in full face of its implications and consequences.