Free pass? No, the dude had a cat named 'Niggerman' and described a black person as a 'disgusting gorilla-like creature' in one of his stories, he was pretty damn racist.
However, it's important to see a piece of work in the context of the era it was created in, because some of his racist thoughts were probably very much shaped by the way society was those days.
Sometimes I can separate the artist from the art, and appreciate the art on its own terms. Lovecraft is one such case. It's probably easier because he's dead and no longer actively promoting racism. Instead we're left with his canon of works, which contain racism, yes, but which will grow no further.
Where it becomes more difficult for me is with artists who are still very much among the living. For example: Jontron.
I used to
adore Jontron's show — it embodied the sort of warm, friendly, all-inclusive humor at no one's expense that I love. His persona was the guy who feels like everyone's friend. And to be fair, his show — up until I stopped watching it — always maintained that tone.
But then we learned that Jontron harbored some horribly racist views. And at that point, I couldn't watch his show anymore, even reruns, because the illusion of him being "the guy who loves everyone" was broken.
I'm still bummed by that. Jontron could've been such a positive presence on the Internet. Someone whose humor brightens people's day and makes their lives easier. Instead he got suckered into the toxic cesspool of GamerGate and adopted their casual cruelty towards those who are different.
Even if he wasn't acting outwardly hostile, he was still propagating views that hurt people around the world. And knowing this, I just can't bring myself to consume the content he (presumably) continues to create. (I say "presumably" because I don't follow him or hear about him anymore.)