I do know that when I first saw a report on this story --on an MSM site-- Obama was described by the MSM reporter as pausing "naughtily."
Clearly, at least that MSM reporter believed that Obama meant to convey the double meaning.
Now that I've seen the clip, I'm not sure. But I do know that an "LGBT" audience is primed to interpret everything sexually.
Would such an audience frown on an off-color joke about any president's wife? No, they would think such a joke would be hip and cool.
Shame on you. It’s blatently racist to accuse Obama of telling an “off-color” joke..