If a lemmy.ml user types ‘bitch’ in a comment it will actually get replaced with ‘removed’. They just won’t notice it until they check their own comments. That might be the reason why you see ‘removed’ even though your instance doesn’t have an active slur filter.
Yep! It only gets censored in two cases:
You are on an instance that censors words like this (e.g. lemmy.ml)
The user who wrote the comment is on an instance that censors this word (which actually replaces it in the comment), everyone sees it censored then