Xbox chat censorship issue

The chat filter on Xbox is on overdrive. With all console settings set to unfiltered and the in game chat filter set to off the game still filters words include night, knight, thanalan and even my own character name Methius. I know this issue affects way more than just me, there are videos on YouTube about it. How this is not listed as a known bug by now is crazy.

Date & Time: all day everyday
Frequency: constant
World name: Behemoth (though I assume it affects ALL Xbox players regardless of world)
Character name: Methius Silvercloud
Party or solo: both
Area and coordinates: Everywhere
Steps: Just chat

Connection Specs
- Type of internet connection/provider: not relevant
- Modem maker/model number: not relevant

It does seem like a big issue. I heard Xbox banned someone for talking about FCs.