To be honest, I often felt that a lot of Diversity and Equity campaigns lead to more sterile environments: when I (Not American) joined my current (American) corporation, DEI training hammered down the point to cut out any type of joke and remark unless it was super sterile. This was definitely not something I was used to before. I can see that such things are a necessity unless you want to end up in litigation all the time, because a joke or prank that might seem harmless to 99.9% of people will still offend that one outlier, and at the scale of huge corporations (or huge college campuses) you will find that one person who perceives this as yet another micro-agression at their expense. So everything that isn't bland and non-offensive gets increasingly outlawed, or at least discouraged. It definitely leads to a lot of self-censoring. Am I even allowed to poke fun at my own geekness, or make fun of stereotypes of my own nationality (obviously I wouldn't make fun of other people's traits these days), or will that offend any bystander that also shares these features with me?

Of course, the end result is what you pointed out: in a litigation-happy place (like the US) everything that offends people is going to be dragged into the courts by someone, and is going to cost actual money, and everyone wants to avoid that.