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This is highly dependent on culture

In Australia this would be considered normal office conversation.

I started my career in the UK around 2010 and it could have been normal banter at that point but I feel workplace relationships have generally become more corporate and risk-averse since then and it wouldn't be acceptable in most office environments anymore. I suppose everyone will have a different experience.

Everyone certainly does have a different perspective.

Personally, I've never worked anywhere in Blighty where giving and accepting piss taking and creative insults isn't the norm. Anybody offended by this will be politely told to develop a sense of humour (of the type spelt with a 'u').

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