You guys took that scene way too seriously. It's just hazing with some light gay comments to make fun of the situation. It isn't that uncommon in frat boy circles and things like that. I live in the middle of Europe and one of my best friends had a hazing like that when he started his social club activities in university, 7 years ago. As far as we know they aren't douches, maybe just a little too arrogant but we are explained that this is like the first team in forever that are actually very good, not just decent. And we're shown multiple characters of that team that genuinely seem like good people, like Aziz for example, we saw the dude named Dex being a decent chap with Jeffrey and to the MC, and we're also shown a few others. So far they all seem decent enough with no real douchebags.The scene kind of speaks for itself. It's safe to say that the first team is full of douchebags; that they humiliate freshmen from the very beginning and asserting dominance; that MC and Dwight would likely have a conflict, their Orcs vs. Humans face-to-face kinda impy this.
Even my opinion of Mario has gone up a bit when you talk to Vanessa about him the night at Nick's home, as he might not be the asshole self-centered douchebag that he appears to be on the surface when he is first presented. Maybe he just acts that way to blend in his rich kids social circle.