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During the course of the quest you are notified of aggressive entities nearby with the text that "They do not seem inclined to nonviolent intercourse." I submit this because the word choice used here implies a sexual nature rather than the intended verbal communication. I feel that it would be more reasonable to replace "intercourse" in this case to use the word "discourse" to avoid this.
Discourse meaning is specific to written or verbal communication or debate.
Intercourse meaning covers both written/verbal and physical interaction, the latter which the denizens of the mechanical race excel in.
As in they fight instead of engaging in debate, so it is more fitting than "discourse" in that case.
As for it's connotation in relation to sex, when that meaning is to be implied, then it's prefaced with the "type" of sexual inference, thus adjusting it's meaning.
'Intercourse' is not an inherently sexual word. It primarily means communication between two individuals.
Inferred meanings beyond that are of one's own individual doing; 'intercourse' between two people - especially when using antiquated language like this game commonly does - doesn't have anything to do with sex.
"Intercourse" being sexual just comes from a shortening of the phrase "sexual intercourse", it isn't an inherently sexual word.