Apparently the word has an unfortunate etymology:
‘”MULATTO” IS A DONT
Mulatto arguably has the ugliest roots of the antiquated terms on this list. Historically used to describe the child of a black person and a white person, the term reportedly originates from the Spanish word mulato, which, in turn, originates from the word mula, or mulethe offspring of a horse and a donkey. Clearly, this term is offensive, as it compares the union of human beings to that of animals.’
https://www.thoughtco.com/avoid-these-five-racial-terms-2834959
[The link goes to a very liberal site, so take the information with a grain of salt.]
I believe it was Mark Twain who opined it was the animals that might rightly take offense at such comparisons.
Humans ARE animals.