I missed whatever the context for this was (though given it's Mario Party I assume they brought up the game that got recalled for including it); but in the UK a "spastic" is a term for someone with cerebral palsy that's usually used in a derogatory manner. It's only a mild slur, basically on par with "retard" so there's no reason for anyone to actually take offence to it, but I can also see why they didn't want to use it in a kids' game.
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