I would agree here, assuming that the filter exists to keep chat safe for kids, it can actually have the opposite intended effect if it does not factor in when the words are used as part of a larger word.
For example, if somebody in chat said 'analogy', then the kid would see ****ogy. The kid would then try to figure out what was intended to fill in the blanks, and perhaps learn a new word in the process.
It brings focus to what otherwise would have been unseen.