Yes, because it has been against the rules to use profanity, masked profanity, slurs, hateful speech, sexual comments, references to certain body parts/functions, advertising, spam, etc since WoW released - and for every game after.
They have always penalized people for breaking those rules if they get reported. Always. The filter exists to let parents protect minors from people who can’t follow the rules. Not to allow someone to break the rules they agreed to.
No swearing means no swearing. If you swear and get reported, you very likely get penalized. This is kind of self explanatory.
Mature Language Filter (aka The Profanity Filter)
This can be activated within your Interface Options: Main menu (ESC key by default) Click Interface > Social and check - Mature Language Filter.
Once enabled, all inappropriate words in our profanity database will be filtered and masked to appear as jumbled characters, such as ‘*##@&’.
Note: The filter does not excuse the language used. The filter serves as a temporary shield, to help parents of minors and others who do not wish to see it, to block it. Our policies prohibit the use of both clear and masked inappropriate language.
Oh, and games are rated by the ESRB for Blizzard’s pre-made content can be reviewed.P layer interactions (names and chat) are not rated. Those have to follow the Code of Conduct no matter what the game rating is.
They are asking someone to look at the game logs again. To verify if a mistake was made or not. If they used profanity then yes, the rule and penalty will be upheld. They don’t care WHY someone does it, only that they did.