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Yeah you're correct it's Microsoft policies - my mistake.It's not T10's fault. Microsoft dictates the censorship policy and in just about every case of "SS" appearing as a solitary letter pairing the name and badging is censored.
Interestingly, the one car closest to being an actual vehicle driven by actual Nazis is not censored: the 1929 Mercedes-Benz SSK Roadster. Although that's not just "SS" on its own.
Sony isn't quite as reactive, but a GTP member was suspended from PSN after uploading a KKK Turbolader decal to GT Sport... The word filter is also over the top in chat.