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Capcom is worried that mods “offensive to public order and morals” will ‘tarnish’ the rep of their PC games
(www.rockpapershotgun.com)
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I don't think I've seen any public backlash hitting the developer or publisher for the content of a mod being "offensive to public order and morals" since the hot coffee stuff, and that was only because it was content already in the game. This is almost certainly a lie and the real reason is they're worried mods will compete with things they're selling.
It was literally the reference point I used in my post for the last time I've seen any real backlash, in the first sentence.