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They almost certainly picked it just for the joke.
queer.af = Queer AF = Queer as fuck!
It’s like how popular the TLD of Guernsey (.gg) is with gaming websites.
I wouldn’t be surprised if they didn’t even realize what country code the TLD was when they registered it.
Prediction: Starbucks resolves the issue by raising all “milk” product prices to match the most expensive option.