There are a few gay people in the world, they just don't have the "Look at me I'm a gay character" trope attached, the characters are treated like they are just there as part of the world and imo that is the absolute best outcome because gay people aren't any different from everyone else nor is a trans person nor is a lesbian and so on and so on, we are all just people that just happen to have a different preference.

The number of people shown as LGBTQ+ is also low but that is reasonable because we are a minority.

Small list of npcs I found
-the couple for Wanderer's Palace HM, they were persecuted for being mixed race not for being same gender, this gives us a good idea that society does not care about sexual preference being the same gender, this type of view is further supported by Ishgard with Hume and Elezen affairs being the most scandalous of gossip.
-"Stupid Sexy Rodegyn" guy, a reference to us but he is attracted to that Roe in universe
-"Lower, Lower" Roe and dude scrubbing his back, again another reference to us but taken as in universe that Roe wants that man to give him a happy ending wink wink knudge knudge
-Budunga tribe(the green tribe with Magnai) they are an all male tribe, they take male children either by force or trade, stands to reason that there would be at least 1 or 2 tribe members liking their fellow tribe members they grew up with(all boy school situation, it is more likely to happen than a mixed school).
-Hingashi culture in general, male prostitutes who have no qualms with male clients, villain with obvious villain moustache in Hildabrand regularly sees males crossdressing.
-EB ceremonies don't discriminate ever, in universe just shows how accepting the staff for the church there is.
-Little Ladies Day 2018, the girl band group ask my male character was I waiting for my Senchestal implying they were thinking me as a princess, they didn't bat an eye at this so it is not unheard of a guy being pampered on Little Ladies Day, it is just not the norm.(sorta want a Little Ladies Day to actually go further along this route even if a side part of the event)
-The current Rising event NPC couple, I fully take them as a couple, others take them as friends, no one is wrong in thinking either, you never ask so they never tell sorta like real life relationships.

Representation for Representation sake usually leads to the character in question as a shallow puddle where their representation is all that matters I do not want that because I am sick of just being a token character in a story, we are people that have many different qualities that make us who we are.

TLDR: There is plenty of representation and just adding more for the sake of it would just be obnoxious

Also hi Titanmen running out of material or recycling it, I seem to remember an old version of this very thread a few years back, how long you been playing this waiting game.