The first is about Awlthrow himself—or rather, herself. Harry learns that she is a woman, and that he has in fact been misgendering many goblin women. Goblin women are a bit shorter and stockier than goblin men and are the only gender with facial hair (usually goatees); most wizards never bother to learn this. (It turns out that Harry isn’t the only one making such a fundamental mistake: Awlthrow notices at this point that Harry is actually quite small for a wizard and realizes he is a child, albeit one who would be considered a warrior by goblin standards.) Although Awlthrow’s lesbian marriage is legal—any marriage is legal among the goblins as long as the partners are warriors who are willing and able to defend it—gay relationships are somewhat disfavored, which is why she and her wife interact more with wizards than goblins. Inkeye’s comment about "their beards rubbing together" was homophobic.