Independent of whether Lipschultz made the right call or not (but oh my god whyyyyyyyyyyyyyyyyyyyy), there's also this weird chain of events that appears? to go something like this:
Lipschultz: haha good KKK joke, let's keep that in
XSEED: uh, well, this seems kind of weird, let's ask Acquire if that's intentional
Acquire: ... (two weeks later) here's a new build of the game
XSEED: oh, it looks like the KKK reference is gone, I guess everything's cool
Lipschultz: I see that Acquire has removed the KKK reference, they totally wouldn't have done that if we'd just shut our mouths about it, please take me off the credits of this game
And it's like... what? This is what you consider "fighting the good fight"? At best, you're fighting for an obscure joke on the extremely small chance that someone on your audience will know exactly what's being referenced, as opposed to "holy shit this game is racist,"? Over the apparent wishes of the parent developer who presumably knows something about why the joke is in there and whether it's worth saving? Also, man, how do you let a guy like that keep working for you? Moreover, as that guy, how do you keep working for a company that has told you you will no longer be credited on any game you work on for the company? Like... what is even going on here?