I think Gen Xers were being Gen X. White ignorance was profound. I missed being an X by like a year, but while I watched most of the angst from the standpoint of a little brother (metaphorically), I was definitely as preoccupied with my suburban teenage nihilism as any of them. In the early days of the internet, we were still lightyears away from being as connected and aware of the sheer breadth of the brutal realities of the world as we are now.
All that to say, most white teens and young adults thought racism was over. The Cosby Show and Fresh Price were on TV, after all. The idea of modern day Nazis was beyond absurd - which is why people were cool making Hitler jokes, and Prince Harry wore that regrettable Halloween costume, and more recently, the Little Britain guys thought it was okay for white comics to portray stereotypical caricatures of People of Colour. We all thought that ironic racism could never be possibly be mistaken for the real thing. Because racism was the province of crazy skinheads throwing bricks through windows; not a tangible, systemic, pervasive issue that ignorant, throwaway, insensitive comedy actively contributes to.
And while things changed, the dissemination of knowledge about the reality of the world, and more importantly, development of empathy amongst Gen X progressives, was s l o w. There was a huge chunk of time when Gen X and early Millennial whites were posting cynical and ironic and nihilistic shit on Twitter, but the concept of white privilege wasn't part of our vocabulary. I'm relieved I was never into social media, because I would absolutely have regrettable, heartless, ignorant, phobic, racist shit on there that would haunt me in this day and age, not just because people would drag me for the person I used to be, but because I'd feel beyond ashamed that I'd put so much ignorant shit out into the world for the sake of getting a laugh. The transphobic ending of Ace Ventura is one of the most on-point examples of this. The antisemitic shit in South Park is another.
I might be way off base, I haven't read anything or studied this, but that's how I remember/interpret the phenomenon, as a kid who grew up in the 90s and was part of the problem.