>My guy friend (24m) and his friends always say jokes to each other that I would personally find really offensive if they were said to me but they all seem to be fine with it.

This is a weird thing about guys. I used to be amazed at the harsh things my ex would say about or to other guys, like he had one co-worker he addressed as "maggot." Women just don't do that!

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>Should I distance myself from this friend?

It couldn't hurt.