Illustration by Nick Barclay / The VergeTwitch is updating the way it responds to s**ual content. As part of the change, the streaming platform will now allow some previously prohibited content — as long as it has a label to warn viewers.Twitch has long struggled with moderating content containing s**ual material and has faced backlash for its uneven handling in the past. While Twitch notably banned Indiefoxx over what the streamer claimed was a wardrobe malfunction, the company chose to warn — not ban — top streamer Pokimane for accidentally showing a p***hub page. Twitch also recently banned a female creator who appeared to be streaming while topless.The platform will now allow “deliberately highlighted breasts, b***ocks or pelvic region” if the stream has a Content…