My name is not against ToS/Rules - Yet being forced to change it

[LilimoLimomo]

I understand that my point could be "dismissed" saying that you wouldn't know in what terms I'm using it, so others wouldn't either, so in my defense I'm going to ask: why then is that an allowed word for a name if you're going to ban it later, and there are probably over 100s of other players using "Loli" as a part of their name?.

It sounds like you understand why your name falls into an unacceptable area, and your main question is about why you've been taken to task for it now as opposed to earlier, and why there are others who have yet to be taken to task for it.

While I can't give you a perfect answer as I'm not an employee of CBU3 and hence can't see their code and processes, it's likely that the string "loli" isn't on FF14's "there is no situation where this series of letters is allowed" list. Because of that, it wouldn't automatically be caught by software. This could be an oversight, but it could also be that the devs think that "loli" is okay when used as a part of other names. Regardless, that doesn't mean "loli" is in the clear; it just means the acceptability of those letters will be determined by context.

It sounds like instead of having someone whose mind-numbing job is to read every name of every player character and decide whether it should be flagged or not, CBU3 has taken the more efficient route of just letting things slide until they're flagged by real players. Odds are that someone saw your name and reported it, and that CBU3 staff looked at the context and agreed that a player shouldn't be permitted to have your name. Which would suggest that everyone else with a similar "loli" name simply hasn't been reported yet. So if you want to make things more equitable, you could certainly report them. Or perhaps your bringing this to CBU3's attention will encourage them to be more proactive about "loli" and flag them sooner, or go do a mass flag in the upcoming days or weeks. Though maybe not; that's for them to decide.

There's PLENTY of in-game content from SE itself that I could absolutely classify as "Obscene/Indecent", starting from a big list of different provocative outfits, among other various things. If that is totally fine, why my name is not?

The difference is that you are a player and not static content that was created by CBU3. Everything that the developers add to the game has been designed to function and exist only in the contexts those who own the game have chosen, and layers of managers and stakeholders have greenlit these assets within those contexts.

In contrast, your name doesn't go through that same vetting process. And it can't, since you are a living person capable of dynamic behavior, as opposed to static in-game assets that won't be changed or have their context changed without further developer changes and approval processes. Because of that, you are subject to different limitations and expectations.