Really? I remember one scene that stood out. Can't remember which chapter it was, but it was just when the whole team was together after he makes up with vic and just had Kieran show up. She got chased off by vic and then CJ says bye and the word and noone says anything. I am pretty sure there were a lot more people there at that point aside from jamie and sarah. I understood why those two didn't say anything. Or am I misremembering things here?Leah had just walked out of earshot of him in Ch11 when he said it, otherwise she probably would have.
The only other people who heard him say it are Jamie (Who at that point is desperately trying to seem manlier near him and starts cursing a ton as a result) and Sarah (Who, as her latest side story in Ch31 shows, doesn't really understand curse words that aren't threats.)
About the other thing. Like I said I think it's handled pretty well. It's not portrayed as sexy in any way, noone is having a good time, everyone reacts with the appropriate shock and horror at what happened. And I don't hate Vic for it, just wanted to comment on the unreliable narrator thing.