Honestly, I don’t see why people are offended. I don’t see any disrespect done in the video. This is a case of people being overly sensitive. Book of Mormon is much worse at mocking the religion and it’s accepted if not well-liked by the Church of Latter Day Saints.
EDIT: Still can’t reply to @johnnyisagentleman for some reason so putting my reply here again: Is Jesus really being portrayed as a drag queen here? It seems more like the reverse, with a drag queen portraying Jesus. The portrayal itself doesn’t appear to have any elements mocking the figure. If anything, it seems like it’s trying to be as respectful.