The issue wasn't about them standing up for LGBT rights. Paradox got pissed at White Wolf because their attempt to do that was "The anti-gay death camps are ACTUALLY a conspiracy meant to distract the media from how vampires run Chechnya." White Wolf has a history of insane bullshit like that, so really it's just the straw that broke the camel's back. It's a result of their attempts to put fantastical bullshit into the real world and do it seamlessly where the fantastical bullshit is interacting with real, current events.
They always try to do pro-liberal messages that they bungle horrifically and end up with characters that are Nazis, murderers, pedophiles, etc. and end up offending EVERYBODY. White Wolf has spent years trying to make an edgy, counter-culture political game and failing horrifically. Nobody likes them. If you're right-leaning you hate their hamfisted and clumsy attempts at political messaging that treats anybody right of Lenin as a Nazi, and if you're left-leaning you hate that their idea of a strong gay character is a serial murdering rapist cannibal.
Just look at the controversy surrounding Beast and how it had a lot of outrage about how you essentially played as serial rapists, the victims that wanted revenge on you were the bad guys that just misunderstood you, the author of Beast was alleged to be a serial rapist, it was a pointlessly edgy attempt to make an "outcast" group that didn't fit into the setting, etc. It's not even the most extreme example of their bullshit, but it's very emblematic.