Yep. That episode. I wouldn't be surprised if most episodes with adult jokes got banned in the future for being inappropriate. They're missing the point of an adult joke entirely if they do that. What makes them funny, is that they fly over kids' heads, but it'll make a grown adult laugh their ass off. Nick has been really screwing Spongebob after Hillenburg passed, even though he OKed some of it (Such as Kamp Koral)
Honestly, I'm surprised that got by at all lol. Shame to see it go tbh, "Are you feeling it now, Mr.Krabs?!" is an iconic Spongebob meme.