It's hard to say exactly, but I feel it's close enough that dog lovers might want to be wary. One of Zappa's summons is a ghostly dog that can be smacked away by his opponent, removing it from the battle. However, the dog can be resummoned, so this is not permanent.
zappa, a character who is possessed by ghosts that he uses to fight, has a dog ghost alongside him. we never learn if this is an actual dog or just a spirit that looks like one, and it is never expanded upon. iffy.
Bridget herself does not really seek any kind of sexual encounters, and in fact she has not come out as trans yet at the time of this game. BUT several male characters flirt with her and react in shock when they learn her identity. This is played as a transphobic joke.
NOT within the game itself (to my knowledge) but I feel it's worth mentioning that this game's playable cast includes probably the single most well known recipient of the "other" t-slur, and in fact this was the very game that she debuted in. Be careful with fan content.
one of the deuteragonists, ky kiske, works for the international police, and much of the story mode involves him and bounty hunters seeking out people to capture for a bounty.
zappa’s appearance can be disturbing, as his (possessed) body contorts in a way that’s reminiscent of horror movies. he also has a face that appears through his back.
Slayer is constantly smoking tobacco onscreen, and Baiken is seen with a pipe in some of her animations. Additionally, Chipp's backstory involves him being a drug addict.
two characters. testament dies in a forest fire in their non-canon bad ending, and while sol's death in his (also non-canon) bad ending isn't caused by actual fire, the CG for it depicts parts of his body and clothing dissolving into fire
with regards to bridget. one of his story paths in particular revolves around the joke, and his gender is frequently mistaken by other characters.
(edit: post-strive bridget's arc rectifies some of the weird stereotypical writing at the time of x2's release but taken at face value without the context of strive, bridget was originally written as a transmisogynist joke.)
Sort of. One of the playable characters would later come out as transgender in a sequel. As this entry is much older, she is not referred to with her currently preferred pronouns.
Almost all of Testament's animations involve using their own blood as weapons, and if you play an older version of the game characters bleed when struck in battle.