In a rational world, no it wouldn't be an issue as, unless I missed something, the intent was not insult but merely part of the parade dressed up as a loved character. But of course little is rational in this world.
Some are offended at the inoffensive, and justify it by making strange claims, others feel they should be offended, and yet again more opt to be offended on behalf of others. (Which leads me to wonder if the complainers had brown or pink skin colour.)
I suspect the police are obliged to investigate the complaint. But unless the individuals concerns were acting badly it should have been a simple, "Ah ok, no offence, carry on then".
It is all very well not wishing to cause offence, but banning the inoffensive offends many. Folk just need to get a life. And society stop pandering to the most thin skinned.
The only thing one might hold against them is the claim that they knew some folk are "wired" to scream offence at any opportunity, and they would react that way, but there again why should that take priority and dictate to the majority ?