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Yes, they publish plenty of stuff like that. From what I can work out, having seen discussions with other authors:
Then there's all this bizarre stuff how you can't touch certain topics but you can imply them. Eg if you have a werewolf screwing novel you can't put a wolf on the front. You have to put a man, or a half-man, half-wolf.
classic literature gets a free pass
traditionally published novels pretty much get a pass
they are even stricter with "erotica" than with "romance"
it's pretty arbitrary - you may get a prudish reviewer/checker
even those with a slew of published works, selling well, frequently get new ones blocked