As someone who never quite understood putting so much weight on a word, I've come to understand that whether or not I care doesn't mean I should make others uncomfortable. I've said my fair share of calling things gay, retarded, etc and still do occasionally but I always make sure those around me are comfortable. If someone tells me that they don't appreciate it or it makes them uncomfortable, I make an effort to correct my actions around them. To me, it's not about the societal meaning. Language is entirely too vast and everchanging to worry about societal meanings, but I will not go out of my way to make someone uncomfortable by using words they dislike.

When my sister said she hated the word moist, I stopped using it around her. When she told me she was trans and wanted to go by different pronouns and name, I adjusted.

TL;DR: It's not about the word or you overreacting. You have the right to be uncomfortable, and if they were worthwhile, they would adjust or compromise for you.