to be fair, i may not be austrian, but i'm german and we obviously speak the same language, so maybe i can try to explain
the word retard itself, or the german equivalent, is not considered a slur by any means, for example if it rains outside you could say "oh the weather is extremely retarded again today" and everybody understands and no one would be upset about it, same as when your car breaks down an the way to work, you just call your boss and say you'll be a little late bc your car is acting retarded
the concept of slurs is a tumblr-born english phenomenon as far as i can tell (i only know german and a bit of english, so idk if it exists in french for example idk)
i hate kiara as any other guy, but the way i read it that's not on her but on the language differences