that's the point - he didn't. the term wasn't vulgar until more modern times. but most players aren't going to go look that stuff up; better to just steer clear, since you know "bad words" are something that at least one of your realm mates doesn't think is appropriate.
I'm sorry, but "arse" has been a term for a person's rear end since Anglo-Saxon times, and what with spelling not being standardized till the last few centuries, there's little enough to choose between the words.
Calling "ass" vulgar is perfectly reasonable.