The word is used in the film for multiple reasons.
1. It help establishes Wade Cleland Jr. was still a murderer and a scumbag even if he wasn't the killer of Dwight's parents. He helped the real killer die a free man as well.
2. Its use by Teddy Cleland helps reinforce the fact that the Cleland family are trash.
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After seeing Tarantino's recent films I'm not as shocked by it being said once or twice by a redneck in this film. Except there was one part where I thought his fat gun nut friend said "I've got 16 n****rs". I swear I rewound it several times and had to watch the next ten minutes to realize he must've said "acres". And at first I didn't know if he was referring to black people or white people (in hillbilly areas the anti-racist peeps might say that word to refer to lazy, classless or *beep* trash white people, so thought he was saying he knew 16 of those that had a quiet place the protagonist could go to crash. Or that he owned or killed 16 black people, wasn't sure TBH. Don't blame me, it's not my fault my ears are racist.
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