This was printed in Playboy magazine in April 2001.
It’s hard to explain to people who weren’t around back then how loose the “rules” were for making games. Conker’s Bad Fur Day was definitely trying to market itself as edgy, but aside from some faith-based groups who would be upset, nobody really cared.
Doesn’t change the fact that Nintendo only owned a minority share and that this specific game was not published by Nintendo. They had access to the development tools already, so it was no special treatment for Conker.