It’s a funny moment in an otherwise serious arc, but why did Yushiro call Nezuko ugly?
It’s likely that Yushiro decides to call Nezuko ugly because of his protective nature over Lady Tamayo. He does not like outsiders meeting with Tamayo. Also, it’s revealed that Yushiro was a human who became a demon. He may also be jealous of Nezuko fulfilling what he thought made him special.
Yushiro becomes more accepting of Tanjiro and Nezuko once they prove to be capable fighters and protectors of Lady Tamayo.
Yushiro decides to call Nezuko ugly
In chapter #15, Yushiro approaches Tanjiro and Nezuko. The previous chapter, Lady Tamayo helps break up the public scene caused by Tanjiro recognizing Muzan. The demon turns a helpless civilian into a demon in order to blend into the crowd and escape.
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Tanjiro asks if Yushiro is waiting for him, as he can follow Tamayo’s demon scent without being guided. Yushiro informs Tanjiro that they’re under a concealment spell, so Tanjiro would not be able to trace their location.
“Besides,” Yushiro begins. “Isn’t she a demon? What’s more, she’s a hag.”
Tanjiro, becoming rightfully offended that his sister is being insulted, insists Yushiro take a look at her features. He says Nezuko is known as the town’s beauty.
Yushiro ushers them to Lady Tamayo’s hideout, but Tanjiro is still not satisfied. “Okay,” Tanjiro says. “But calling her a hag is way out of line!” He tries to bring Yushiro and Nezuko under better lighting so his features can be noticed more clearly.
The trio meets Lady Tamayo
Once the trio arrives at Tamayo’s mansion, Tanjiro still tries to convince Yushiro. He starts to remove Nezuko’s bamboo muzzle before being interrupted by Tamayo.
As it turns out, Yushiro is incredibly protective of Tamayo. He attacks Tanjiro whenever he perceives something disrespectful to be said to his master.
It is also revealed that Yushiro is the only human that Tamayo was able to successfully turn into a demon. He is her sole creation after 200 years of work and study.
But where does that leave us with Nezuko? Well, it seems as though this protective nature is why Yushiro called Nezuko ugly. He may also feel a sense of personal pride, as he thought he was the only human to turn into a demon.
So that’s the answer. Yushiro decides to call Nezuko ugly because he has a stand-off nature. He’s extremely protective of Tamayo, and may despise Nezuko for being a human who converted to a demon, as he thought he was the first one.