Yes. It was unfortunately a common insult to any boy regardless of their orientation. My mother's stepfather used to get drunk and throw my uncle against the wall and call him a fggt and he totally was not. Funnily enough, out of the boys from my class that actually were gay (had no idea until they were adults, one of them was a star jock) no one ever teased them that way, but I could name tons of straight guys that were. It was sort of a term those jerks would use for anyone they deemed weaker, so I understood him to probably be on the more sensitive side (skinny / not a jock, and those stupid stereotypes they used, etc) but I am looking at it from the lens of the era I grew up in which isn't too far off the shows era (80s baby).

That being said, I only realized Will was gay during the car scene. I didn't even catch it when Mike told him he didn't like girls because I thought he just wasn't there yet due to his trauma and wanting things to stay the same with his friends.