The tribunal also heard there had been discussion in Ms Peggie’s workplace chat with colleagues about Dr Upton “causing problems” in the past regarding pronouns at previous jobs.
One person in the chat was alleged to have claimed colleagues were “walking on eggshells” when working alongside Dr Upton.
Ms Peggie was also asked about racial comments and jokes made in the past, which had been heavily discussed during the previous day’s testimony.
She denied making a remark about wanting to post bacon through the letterbox of a nearby mosque, attributing the comment to a paramedic.
Two colleagues who gave evidence on Monday said that Ms Peggie made the remark during a lunch with friends.
However, Ms Peggie admitted she had a fear of the mosque being built in Kirkcaldy, due to her having concerns about Sharia Law being introduced in the UK.
She said did not dislike all Muslims, and that her beliefs did not mean she would ever treat patients differently.
She added that she had taken jokes about floods in Pakistan from a Facebook page and while they were “distasteful”, it was to “sent in dark humour” to friends.
The nurse said she had used derogatory terms to describe people from Pakistan and China because these were common terms when she was growing up.
She said people of those ethnicities that she knew were not offended when the terms had been used.
Ms Peggie was greeted on arrival at the tribunal by Joanna Cherry, the former SNP MP for Edinburgh South West.
The tribunal has finished witness evidence and will next consider written submissions on Wednesday, with oral submissions to be heard at the start of September.