The phrase that upset and even outraged some of the participants is: “our penises and vagina’s are neither ‘micro’ nor ‘soft'”. The play on words did not have the desired effect to no one’s surprise except for the people who organised the convention.
It seems that the problem was not because of the uncensored song but because the attribute soft was nothing to fear from a woman’s point of view. Because of this women felt left out. Microsoft already has a reputation of being sexist.
Microsoft apologies right after the event on Twitter: “This routine had vulgar language, was inappropriate and was just not ok. We apologize to our customers and partners.”