In regard to verbal sexual conduct I would say it is certainly undesirable in a work environment. I wouldn't allow it for a second if I ran a company, but this isn't my company. If Upload want's sexual conduct to be a part of their work environment, it's a dumb choice, but it's their choice.
You can't brow beat society into being perfect, you can only give people basic rights and hope for the best.
I'm sorry but I just don't think anyone has the right to be free from verbal harassment. I challenge you to even come up with a definition for verbal harassment that could be universally applicable.