Ok, let me see if I understand the “logic” behind this attempt to reduce bullying. If a kid can swear the bully will run away?
I'll explain the logic because it does exist. This type of program is used in schools all over the world and has proven efficacy in dealing with bullying.
The teacher first of all gets students to write down examples of real insults and verbal attacks, they have heard in their own school and community. The idea is simple - to use the language the kids are hearing and may well be using themselves in these types of situations. There's a few reasons for doing it this way - a couple of them are to avoid turning the class into something that is treated as a joke, by using sanitised and outdated terms (like 'sissy' or 'wimp' or 'nerd') that kids will regard as stupid and silly and showing that the teacher is so completely out of touch that they are not worth listening to; and because some of the terms that are being used in many places are offensive enough that only the most teacher imaginable would give a list of them to a group of students - you get the students to make the list so you are dealing with what they experience and say. If it's a community where kids don't swear and curse (and there are hopefully still communities like that) the lists the kids come up with won't contain curse words. If the lists do contain such words, it's because those are the words the kids are using.
The lists can also be useful in telling the teacher what problems exist in their community - if the lists of "insults" include the words 'bible bitch', it might be an indication that there's specific bullying of Christian students occurring (and it does happen), just as one example.
So once you have the lists what is done with them. In essence the program gets kids to use these authentic insults on a paper model, and uses the model to send two messages. One that words and insults can hurt people, and two that just saying you are sorry afterwards doesn't undo the damage. In a society where large amounts of children are being taught that their misbehaviour doesn't have consequences, and where the typical response of parents to much misbehaviour is based around fluffy ideas like "Tell Sarah you're sorry and give her a hug," explaining that that isn't a solution is necessary in many cases. Schools typically have a lot less power to discipline and punish children than their parents do - and when parents only ever take the warm and fluffy approaches, schools need to develop programs based around that, whether they want to or not. You have to do what works.
This type of program doesn't work with serious bullying - the type where the bully enjoys what they are doing and does it because they enjoy it. It does often work with the more minor and common forms of bullying where the kids who are doing it, aren't that bad, and once they understand it is hurting somebody and isn't just a big joke, are less likely to do it. It doesn't solve all the problems - but it can solve a decent chunk of them.
Schools and teachers do a lot of dumb things and there are a lot of programs in schools that are, frankly, stupid and wrongheaded. But not everything is, and sometimes a program may be a lot more sophisticated than it looks like superficially. The media isn't going to explain a program in detail. It's going to talk about a small feature of it. That is what is happening here.