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too bad the developers are pretty toxic and refuse to moderate their discord
Agreed. Their discord has been full of inconsiderate jokes and memes for a long time. It's not untypical of many edgy internet communities but it being directly associated with a project isn't a good look.
I definitely wouldn't want to get involved with such a project, altough it is a good piece of software and I don't see their behaviour influencing the popularity of hyprland.
My problem with that is that Vaxry is openly in support of the open racism and transphobia in the discord, and with him also being the lead dev I worry it might possibly affect the development at some point
Yes, with Vaxry being banned from contributing to wlroots, hyprland development won't get easier. At the same time I'd say wlroots and hyprland are largely feature complete, so not being able to contribute might not have a large impact on hyprland.