Grossing up in the 90s and early 00s, saying “that’s gay” for something that sucked/was bad, and “that’s retarded” for something stupid/nonsensical were just common phrases amongst millennial kids.

Not saying that either should be acceptable nowadays (especially the former), but having a brain-fart and reverting to a phrase from Torre childhood can happen. Best we can do in that situation is to apologise, and move on.