First of all in Europe the N word IS considered racist
Actually Bjork said this thing back in 1997/1998 in a French interview
https://www.youtube.com/watch?v=psiYRmM71-g
What she meant was that everything is designed to look good, but a lot of things are not designed to sounds good, basically we give a lot of importance about looks and designs but we ignore music and sounds.
How she said it is problematic? Yes, it is, but it's clearly not racist.
But she is better than that