Could it be possibly because of some badly written word filter? I’m hinting at the second part of his last name. The extra “g” is there because that’s how it’s spelled in German language, and yes, the translation is what you would guess.
Google says:
From Schwarzenegg + -er, literally “someone from Schwarzenegg”, referring to either of two places in Switzerland and Austria, from schwarz (“black”) + Egg (“ridge”), cognate with Ecke.
The egg in Arnolds name is probably a Styrian-Austrian dialect variation of "Eck" which translates to "corner". In Austria there are many places ending in this egg (sometimes also only with a single "g").
So his literal name might describe somebody coming from a place called "Schwarzenegg". And Schwarzenegg would be literally "Black-Corner".
It is. Very much so. It's the equivalent to the US "n-word".