That specific word in Italian has multiple meanings, one of which being something like "excessive/useless detail or addition, especially when done for the cool factor only" and another being "gayness".
Without the full context of the sentence, it's very hard to say what he meant or what he was saying.
Of course the word is still originating from the slur and shouldn't be used by the pope, but it's technically possible that wasn't even used in relation to any minority (just as much as the opposite)
Unless I missed some extra info or source that has the full context, it's hard to say