Yes, a thing can be racist despite the (theoretical) race of the person doing it...

And you forgot to quote the rest of the section. It's clearly, genuinely weird stuff.

So many of the avatars were ethnically ambiguous, many slightly Asian. Having been a mixed-race Chinese and white woman for more than forty years, I am accustomed to how white supremacy has long used bodies like mine as shorthand for post-raciality, sci-fi imaginaries, and exotic-erotic fantasy. This explains why Lil Miquela, one of the first AI social media influencers, and Kuki look how they do: anime hair buns and sumptuous bangs, wide-set eyes, freckles, small shoulders. (Why are creators obsessed with giving Wasians freckles?) Miquela was made by a man named Trevor McFedries. Originally named Mitsuku, Kuki was made by Steve Worswick.

In this way, my ethnicity has branding associated with it: Futuristic Outsider™. It is selectable, a commodity. This would be true even if Miquela and Kuki were made by Asian women instead of Trevor and Steve; then it would be self-commodification. This being familiar doesn’t make it less sickening.

This isn't a hill you need to die on